Wednesday, March 14, 2007

Mortgage Report Rattles Markets

By S-Q @ 6:17 am MDT


Dow Down 2% On a Big Rise In Delinquencies

A national survey showing that a soaring number of homeowners failed to make their mortgage payments in the last quarter of 2006 rattled lawmakers in Washington and the markets in New York yesterday, as the Dow Jones industrial average plummeted 2 percent, or nearly 243 points.

The report, which sent every major stock market indicator tumbling when it was released at noon, revealed that the problems in the market for "subprime" mortgages -- loans made to home buyers with blemished credit histories -- might be spilling over to the broader mortgage industry, analysts said.

While the number of risky borrowers who missed payments climbed to a four-year high, the number of foreclosures on all homes jumped to its highest level in nearly four decades, according to the survey by the Mortgage Bankers Association. Home buyers who relied on loans insured by the Federal Housing Administration also had record default rates.

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5 comments:

PrissyPatriot said...

Good Morning,

What did dubya expect? Borrow to pay for his war, energy prices/food prices increase and middle class can't pay the bills-DUH!

Interesting email S-Q, QZ where is our favorite shemale today? heehee

S-Q said...

Hey Prissy!

Dubya needs to climb down off his high horse now and wake up! This country is hurting and it needs to take a turn fast!

I don't know where that person is Prissy.. but I know that I am 100% female! LOL

Basheert said...

Why is this a surprise to people?

Our economy is teetering on the edge, we have some HUGE debts to China (who owns Iraq) and the lenders simply extended credit to people who otherwise did not qualify.

People who take out HUGE (non principal payment) mortgages, and who cannot afford the house they buy, and choose an adjustable rate mortgage are simply asking for trouble.

While I admit some of the lending agencies practiced usury, people were certainly not using their intelligence about buying a home when they could simply not afford it.

Or buying too large a home - or putting zero down...

S-Q said...

The AR mortgages were keeping the housing market going but when the bubble burst...too many were buried in investments and now can't sell.. I know too many here in our area, Basheert, that are stuck with huge mortgage payments and trying to sell and nobody is buying... Several in my area up North here!! YIKES!! Not good!

GEEZERPOWER said...

Basheert said...
Why is this a surprise to people

Well...I wouldn't a tall spraddlelegged about it...Bush & Co. set the example on borrowing and using all your capitol. Then they called for an ownership society...lol kept interest low so more people could extend their credit...hell...He even made more timber available for the building industry...A complete faux economy complements of Bush&Co. with a sliding interest rate to go with it.