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 MBA reports: Mortgage Purchase Applications Plummet While Refinance Applications Increase in Latest MBA Weekly Survey

    …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.

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    May 19, 2010. Tags: , , , , , , , , , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Housing, Obama Administration, Politics, TARP, Taxes, Unemployment Statistics, Wall St. Comments off.

    Housing Update 2: ‘Shadow Inventory Dwarfs Loan Mods’; Treasury releases Making Home Affordable status report & NAR figures show median home prices dropped 11.2% y/y

    Update: A-HA!! I knew it!! J’accuse Treasury!!!!! Wonder if they are having Fannie/ Freddie HOLD out on those pre-sale foreclosures to avoid asking for ANOTHER 50B right now, dammit! Who knows when the housing market will stabilize? The shadow inventory knows Muuhuuuhaaaaa. Diana Olick has it:

    (…) But even more distressing was a report I received today from Lender Processing Services, which is a huge mortgage data aggregate.

    Foreclosure inventories continued their upward climb. The nation’s September 2009 foreclosure rate stood at 3.12 percent – a month-over-month increase of 2.6 percent and a year-over-year increase of 88.9 percent. Among individual states, Florida posted the most troubling results with 10.4 percent of loans in foreclosure, and more than 22 percent of loans reported as non-current.

    LPS’ October Mortgage Monitor also cites large “shadow” foreclosure and REO inventories. The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline. Nearly one-third of foreclosures remain in pre-sale status after 12 months – twice as many as the year prior. The six-month average deterioration ratio has risen the past two months to 300 percent, showing that for every loan that improves in status, three more deteriorate further…

    LARGE grain of salt on these HAMP numbers.  PDF from Treasury of the November ‘Servicer Performance Report’ for Making Home Affordable here.

    Continues after the break:

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    November 10, 2009. Tags: , , , , , , , , , , , , , . Economy, Finance, Foreclosures, Glam Metal, Hair Bands, Horror, Obama Administration, Politics, Unemployment Statistics, Wall St. 11 comments.

    Home Sales Rise along with Inventories – CNBC.com

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    May 27, 2009. Tags: , , , , , , , , , , , . Economy, Foreclosures, Housing, Uncategorized, Wall St. Comments off.

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