Thursday, March 6, 2008
Recession fears rise on weakness in the US housing sector
Fresh gloom for US housing market
The number of US home foreclosures, and the rate of homes entering the process, reached record highs in the fourth quarter of 2007, new figures show. The Mortgage Bankers Association data showed the failing loans rate was led by an increasing number of sub-prime borrowers unable to make payments. A record 0.83% of loans entered the foreclosure process. The delinquency rate, of missed payments, was 5.82%.
Posted by jack c @ 06:23 PM (483 views)
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layers says:
Good post. Now with the BBC on board over the whole forboding over the UK property market, in terms of a real house pricecrash, dareI say that the market ‘correction’ will be very deep, but will take many,many months to totally play out? The # of bad news stories that have come out since September 07 show no signs of decline, and indeed are accelerating. Check out:
http://www.bloomberg.com/apps/news?pid=20601087&sid=aqrhXPaeh7cE&refer=home
Summary – Carlyle Group’s publicly traded mortgage bond fund failed to pay margin calls, prompting creditors to seek immediate repayment, as the burning subprime mortgage market scorches investors in even the highest-rated debt.
Other juicy quotes include:
“1987, Carlyle expanded its mortgage investments last year, selling $300 million of shares in Carlyle Capital. The fund used loans to buy about $22 billion of AAA rated mortgage debt”
“Widening Spreads : The agency mortgage-bond market has about $4.5 trillion of securities”
“I don’t think anyone has a recollection of a total disappearance in liquidity. I just cannot remember a time when for six months there are billion of dollars worth of assets out there for which there is just no market.”
Very interesting times… and now an attack on Isreal… nervous times ahead!
Isreal