The residential housing market is in deep trouble.
By Daniel at 23 December, 2009, 8:13 pm
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If you want to understand just how sick the housing market really is, read through the OCC and OTS Mortgage Metrics Report for Third Quarter 2009, which was released to almost no coverage on Monday, except for a really lame WSJ article yesterday “Redefault Rate Decreases.” Don’t read the press release, which covers up the bad news–go to the report itself.
http://www.occ.gov/ftp/release/2009-163a.pdf
The percentage of non-current mortgages (delinquent or in foreclosure) rose to 12.8% in the third quarter, up from 11.4% in the second quarter and 9.9% in the first quarter.
The highly-touted HAMP has resulted in only 781 permanent modifications, less than 1 percent of the trial mortgage modifications done by servicers covered by the report.
More than half of modified mortgages re-default within six months of modification.
In summary, the residential housing market in the U.S. is in very bad shape and getting worse, not better.
- Rebel Cole
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