Delinquencies at 37 year high
David Lereah NAR's cheif economist: "Lending problems in our nation's subprime marketplace are building, which could inhibit future housing activity and further dampen our forecast... Even so, these problems are likely to be contained and not spill over into the prime mortgage market."
Meanwhile in the real world....
Mortgage Bankers Association: the rate of homes entering the foreclosure process hit a record 37 year high at 0.54% and the delinquency rate on U.S. home loans jumped to 4.95% from 4.67% three months earlier.
The delinquencies include 2.4% of prime borrowers and 12.6% of subprime customers for a fourth straight quarterly increase.
Subprime defaults are rippling through the real estate market as delinquencies on subprime loans have doubled in the past 12 months.
Delinquency rates for subprime adjustable rate mortgages reached 14.44% in the fourth quarter, jumping 122 basis points in three months.
Subprime loans more than 60 days delinquent or in foreclosure rose to 10% as of Dec. 31, from 5.4% in May 2005, the highest in seven years.
The number of U.S. foreclosures rose 42% to 1.2 M last year from 2005. 4.53% of the 5.97M subprime loans were in foreclosure at the end of Q4, up from 3.86% that were in foreclosure as of the end of Q3.
Say What? Mr. Lereah? Come again??
Meanwhile in the real world....
Mortgage Bankers Association: the rate of homes entering the foreclosure process hit a record 37 year high at 0.54% and the delinquency rate on U.S. home loans jumped to 4.95% from 4.67% three months earlier.
The delinquencies include 2.4% of prime borrowers and 12.6% of subprime customers for a fourth straight quarterly increase.
Subprime defaults are rippling through the real estate market as delinquencies on subprime loans have doubled in the past 12 months.
Delinquency rates for subprime adjustable rate mortgages reached 14.44% in the fourth quarter, jumping 122 basis points in three months.
Subprime loans more than 60 days delinquent or in foreclosure rose to 10% as of Dec. 31, from 5.4% in May 2005, the highest in seven years.
The number of U.S. foreclosures rose 42% to 1.2 M last year from 2005. 4.53% of the 5.97M subprime loans were in foreclosure at the end of Q4, up from 3.86% that were in foreclosure as of the end of Q3.
Say What? Mr. Lereah? Come again??
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