HUD Secretary Shaun Donovan has no worries. CalculatedRisk wonders about mortgageholders who aren't ready for homeownership.
US Foreclosure Filings topped the 300,000 level for the 8th straight month...one in every 335 houses received some kind of late or default or auction notice, up 19% from a year ago, according to RealtyTrac. Read more.
More than 2.4 MILLION homes are expected to be lost to foreclosure in 2010, a conservative estimate. Add this to the over 7 MILLION homes comprising the "shadow inventory" that are not yet on the open market? Home values will be driven lower, and the cycle will continue. While lower prices/values would be good for areas such as Charlottesville Albemarle which haven't finished "correcting" to historic metrics, in other areas falling values will continue a vicious cycle. The NYT urges the Obama Admin to do more with Making Home Affordable, the mod program.
Fannie and Freddie Warn There Will Be More Losses due to the weakening condition of mortgage-insurance companies:
Mortgage Applications, for both new purchases and re-fi's, were at a nine-year low last week, despite rates beneath 5%. Read here.