Housing Update: 1 in 7 home loans now in default or foreclosure (14.69%), 4.3 million units in shadow inventory and purchase applications plunged 27%, lowest level in 13 yrs, but don’t worry! Tim Geithner says Euro Debt crisis could never happen here…
And the hits just keep on comin’ in housing…
Calculated Risk is covering all the bases:
Details from the MBA conference call on the Q1 delinquency RECORD, highlights include:
FHA foreclosure starts up sharply. “Shadow inventory” of 4.3 million loans that need to worked through (90 day delinquent or in foreclosure) – or they will become REOs or distressed sales. Prime fixed rate is now the key problem! “Sand states” will not be as dominant as the problem moves to prime fixed rate.
On the horror show that is the purchase application drop (just like Cash for Clunkers, they cannibalized future sales):
…The Refinance Index increased 14.5 percent from the previous week and the seasonally adjusted Purchase Index decreased 27.1 percent from one week earlier. This is the lowest Purchase Index observed in the survey since May of 1997. …
“Purchase applications plummeted 27 percent last week and have declined almost 20 percent over the past month, despite relatively low interest rates. The data continue to suggest that the tax credit pulled sales into April at the expense of the remainder of the spring buying season. In fact, this drop occurred even as rates on 30-year fixed-rate mortgages continued to fall, and at 4.83 percent are at their lowest level since November 2009,” said Michael Fratantoni, MBA’s Vice President of Research and Economics….
The Greek debt crisis is “not going to happen” in the U.S., Treasury Secretary Tim Geithner said Wednesday.
Geithner rejected comparisons, advanced in large part by Republicans in Congress, between the fiscal situation in the U.S. and the debt crisis in Greece that has roiled the European Union, sent Greece to the brink of default and weakened the euro.
“It’s not going to happen in the United States,” Geithner said during an appearance on CNBC.
The Treasury secretary said a better-than-expected economy would help strengthen government accounts and stave off any parallels to Greece…
The ‘better than expected economy’? Where on Mars? Is he frakking kidding or what?!
Alice Cooper mashup by thornebush5