Prime mortgages get hit, dashing recovery prospects
Bank Failures, Home Prices, Meltdown, Mortgage Lenders, Spillover | (0)
From CNN:
Prime mortgages are starting to record disturbingly high default rates, which could slow any potential housing recovery.
The delinquency rate for prime mortgages worth less than $417,000 was 2.44% in May, compared with 1.38% during May of 2007, according to LoanPerformance, a unit of First American (FAF, Fortune 500) CoreLogic which compiles and analyzes residential mortgage statistics.
Delinquencies jumped even more for prime loans of more than $417,000, so called jumbo loans. They rose to 4.03% of outstanding loans in May, compared with 1.11% a year earlier.
And prime loans issued in early 2007 are performing the worst of all, failing at ...