Fewer home loans are going bad these days, the Mortgage Bankers Assn. said Friday in its quarterly delinquency report.
Calling the finding surprising, the trade group interpreted it as a signal that the housing markets are healing.
“We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007, continued with the meltdown of the California and Florida housing markets due to overbuilding and the weak loan underwriting that supported that overbuilding, and culminated with a recession that saw 8.5 million people lose their jobs,†Jay Brinkmann, the group’s chief economist, said in a statement.
Mike Larson, a real estate and interest rate analyst at Weiss Research, called the report an encouraging indicator "pointing toward broad-based stabilization," but he cautioned about overreacting to the good news.
Click here to read the full article …
