Only a matter of time before the SD coastal market cracks?
“S&P said that total delinquencies for prime jumbos originated in 2006 rose 15.4 percent during March, while the 2007 vintage saw DQs ratchet upward by 15.5 percent — keep in mind, that’s on a monthly comparison basis, to boot. Serious delinquencies rose even higher, to 22.6 percent for the 2006 vintage and 18.8 percent for the 2007s.
While cumulative losses in prime jumbos haven’t yet reached levels that should immediately concern investors, the speed with which even prime jumbos are now headed into delinquency is a trend that every mortgage market participant should keep a close eye on.”
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