Friday, August 08, 2008

2007 mortgages going bad fast than those of 2006

Looks like more dung is still being added to the big shitpile:

Mortgages issued in the first part of 2007 are going bad at a pace that far outstrips the 2006 vintage, suggesting that the blow to the financial system from U.S. housing woes will be deeper than many people earlier estimated.

An analysis prepared for The Wall Street Journal by the Federal Deposit Insurance Corp. shows that 0.91% of prime mortgages from 2007 were seriously delinquent after 12 months, meaning they were in foreclosure or at least 90 days past due. The equivalent figure for 2006 prime mortgages was just 0.33% after 12 months. The data reflect delinquencies as of April 30.

Via Atrios. So 2007 mortgages are going bad a rate almost three times faster than those of 2006. This can't be good for the housing market.

Conflict of interest disclosure: As I've stated before, it's in my interest for the housing market to go down.

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