Despite the continuous improvement in previous months on GDP and unemployment rates (3.2% GDP growth rate on the 1st Q 2010 and lowest jobless claim in April), the reversal shift is becoming the new trend. Currently, the jobless claims remains high (473,000 filed) and the new home sales drop 12.4% to a record low (from 315,000 in June to 276,000). Worse yet, some 3.51% of borrowers were 30 days late in their loan payments in the second quarter of 2010, up from 3.31% at the end of last year, according to new data from the Mortgage Bankers Association.
The economic atmosphere remains gloomy. It will be a a while yet before the US is going to get back on its feet.
2 comments:
Even though the number of late payments are on the rise I did not in the article if there were more homes bought during the same time frame. I believe it would be very interesting to see if new home owners are already beginning to fall behind.
That is quite true that it was not measured in the same time frame. I think the increase in the increase in the late payment might have some relation with the home sales in March and April.Whereby people rushed to earn an $8,000 tax credit after they had signed the contracts.
For more info:
http://money.cnn.com/2010/08/25/real_estate/new_home_sales/index.htm
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