Edited by trioderob, 30 October 2008 - 05:00 PM.
mortgage rates are going up which will drop house prices even more
Started by
trioderob
, Oct 30 2008 04:55 PM
4 replies to this topic
#1
trioderob
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Posted 30 October 2008 - 04:55 PM
mortgage rate are way up in the last 3 weeks as money is moving out of MBS
(even with the libor going down)
we could end up stalling on the housing recovery
by really dropping real estate prices in the next few weeks if money does not start flowing back
into MBS
Rates are still low but this could turn into a huge issue if mbs dont respond to the libor
this started with housing and will end with housing
#2
ed rader
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Posted 30 October 2008 - 05:59 PM
we could end up stalling on the housing recovery
what housing recovery?
ed rader
what housing recovery?
ed rader
#3
Data
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Posted 30 October 2008 - 06:37 PM
the big problem is the defaults on the foreclosure mods. notice that the FHA went out to save 2.1 million homes from foreclosure in 2007-2008. they now report 40% were back in default in the first year. the next foreclosure rescue targets 3 million homes.
#4
ed rader
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Posted 30 October 2008 - 06:47 PM
the big problem is the defaults on the foreclosure mods. notice that the FHA went out to save 2.1 million homes from foreclosure in 2007-2008. they now report 40% were back in default in the first year. the next foreclosure rescue targets 3 million homes.
responsible borrowers are underwater too because they also paid too much for their homes, and it takes two full-time and better than average incomes to pay the mortgage here.
ed rader
#5
milbank
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Posted 30 October 2008 - 08:02 PM
You might as well throw rising job losses into the stew as well. Responsible homeowners aren't immune to that problem crashing down on them either.
"The power of accurate observation is commonly called cynicism by those who have not got it."
--George Bernard Shaw
"None are so hopelessly enslaved as those who falsely believe they are free."
--Johann Wolfgang von Goethe
