NEW YORK (Reuters) – The percentage of U.S. homeowners who owe more than their house is worth will nearly double to 48 percent in 2011 from 26 percent at the end of March, portending another blow to the housing market, Deutsche Bank said on Wednesday.
Home price declines will have their biggest impact on prime "conforming" loans that meet underwriting and size guidelines of Fannie Mae and Freddie Mac, the bank said in a report. Prime conforming loans make up two-thirds of mortgages, and are typically less risky because of stringent requirements.
"We project the next phase of the housing decline will have a far greater impact on prime borrowers," Deutsche analysts Karen Weaver and Ying Shen said in the report.
Las Vegas and parts of Florida and California will see 90 percent or more of their loans underwater by 2011, it added.
"For many, the home has morphed from piggy bank to albatross," the analysts said.
Link to article
6 comments:
A 32 storey building and only one tenant.
link
Half of all mortgages underwater by 2011!
This is gonna hurt. A lot.
Story:
http://www.washingtonpost.com/wp-dyn/content/article/2009/08/03/AR2009080302958.html
Reminds me of a couple that I personally know in Ottawa.
God bless America!
A good link to read.....
http://www.chrismartenson.com/blog/fed-buys-last-weeks-treasury-auction/23880
Here is the full link...Copy and paste each line
http://www.chrismartenson.com/blog/
fed-buys-last-weeks-treasury-auction/
23880
What is occurring is the gradual constriction of the lives of working class Americans. It is like the frog being placed in cold water and then the temperature gradually raised so the water boils. The frog does not realize that it is being boiled to death. That is what is happening to the American worker. They are slowly being boiled whereby they are not getting it.
Of course, many are getting it, but there are many more who are very inept to what is happening to them, it won't register until the boil kills them.
I also must add that there are millions of very stupid Americans who follow the leader, yet don't realize that their leader has been sending them down river without paddles.
Hey, I see someone above posting about Chris Martenson. Well last night I followed a link to his Crash Course and spent a very absorbing couple hours. What a great presenter!
I can't say enough about his material. It's simply brilliant.
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