2011:Underwater Mortgages To Hit 48%
The Nattering One has opined this before... the bottom is nowhere in sight.
Perhaps around 2011 we will see a slowdown in the descent, as opposed to the "artificially stimulated" pulse currently being given by the stock and housing markets.
But oh Nattering One when will it all end?? When the job market can show meaningful employment gains as opposed to hemorraging 500K McJobs per month.
That will be just the start... As of March 31, the share of homes mortgaged for more than their value was 26%, or about 14 million properties.
According to Deutsche Bank the percentage of “underwater” loans may rise to 48%, or 25 million homes, as prices drop through the first quarter of 2011.
Forty-six percent of prime jumbo loans will be larger than their properties' value, up from 29%.
Subprime loans, 69% will be underwater in 2011, up from 50% in March.
Option ARM adjustable-rate mortgages -- which cut payments by allowing principal balances to rise -- 89% will be underwater in 2011, up from 77%.
Las Vegas and parts of Florida and California will see 90% or more of their loans underwater by 2011.
The scary part... Home price declines will have their biggest impact on...
prime "conforming" loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac.
Perhaps around 2011 we will see a slowdown in the descent, as opposed to the "artificially stimulated" pulse currently being given by the stock and housing markets.
But oh Nattering One when will it all end?? When the job market can show meaningful employment gains as opposed to hemorraging 500K McJobs per month.
That will be just the start... As of March 31, the share of homes mortgaged for more than their value was 26%, or about 14 million properties.
According to Deutsche Bank the percentage of “underwater” loans may rise to 48%, or 25 million homes, as prices drop through the first quarter of 2011.
Forty-six percent of prime jumbo loans will be larger than their properties' value, up from 29%.
Subprime loans, 69% will be underwater in 2011, up from 50% in March.
Option ARM adjustable-rate mortgages -- which cut payments by allowing principal balances to rise -- 89% will be underwater in 2011, up from 77%.
Las Vegas and parts of Florida and California will see 90% or more of their loans underwater by 2011.
The scary part... Home price declines will have their biggest impact on...
prime "conforming" loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac.
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