“Additonally the majority of the problemed loans are still coming back to job losses divorce etc. It has not been resets that are creating the majority NOD’s.”
Yes, it is due to EPDs or early payement defaults which is even more concerning when you think about it. The resets are on their way though. Look at the reset graphs that were posted here. The first big wave hits in later 2007.
“Additionlly % rates have remained low. Unemployment data is low. These are driving factors. They are not signaling a turn for the worst.”
Historically low, but higher than during the crazy period between 02 and 06. Once again, we have lots of NODs when rates are low. What does that tell you?? Jobs were lost but replaced with low paying service jobs. Rich stated this explicitly in the recent KPBS interview. The Fed has warned more than once on raising rates to stave off inflation. Don’t think they wont’ raise them.
“Builders and developers used option when they were buying land. They ahve walked away form many of their deals. Supply side economics suggests that they can prop up prices by reducing inventories. This is what they are doing. This type of fuding arragement was not around during the last downturn.”
Builders build. That is what they do. Supply side economics?? Don’t make me laugh, seriously. I gues they will hold onto that inventory at inflated prices while they burn cash building and have to pay their people?? You are talking to someone with years of experience in manufacturing. Holding inventory is bad. Trust me on that one. The builders are undercutting flippers and offering incentives to get their homes to sell. Have not seen the articles about builders getting sued by recent customers because they lowered the prices?? I believe it was lennar.
You need to do better than Raybyrnes. Once again, in flames.
I’m done, I have other things to do than to respond to your ill-informed posts.
