Friday, Apr 16, 2010
Subprime was just Phase One
Counterpunch: Housing crashes again
In the US mortgage rates are edging higher, foreclosures are on the rise, mortgage applications are well down and government programmes that supported house prices are being phased out. National house prices dropped 4% over the last quarter. Subprime defaults may be over but now defaults on Option ARMs and primes are kicking in. e.g. BofA, which currently forecloses on 7,500 houses a month, expects to see that rise to 45,000 by December this year. Writer thinks that banks kept foreclosures low during QE to make it seem as if that was working, but now the banks are flush with reserves from that programme they can afford to offload some of the foreclosure backlog.
Posted by icarus @ 10:07 AM (423 views) Add Comment
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