Option ARM Silent Bomb: $189 Billion in Outstanding Option ARMs with $134 Billion Recasting in 2 Years. 94 Percent of Borrowers Made Minimum Payment.
There is devastating news out this week regarding option ARM loans. Option ARMs are a unique kind of mortgage since they offered borrowers a variety of methods to pay their monthly mortgage. The problem with the data coming out this week is that 94 percent of borrowers elected to go with the most financially destructive [...]
How Much California Inventory? 3.9 Months from Public Data. A drop from 6 Months at the Start of the year and down from 16 Months Reached in Early 2008. Yet Distress Properties are still a Big Part of the Market.
According to recent data from the California Association of Realtors, there is only 3.9 months of unsold inventory on the market. This is actually low. For many that don’t follow the housing market a healthy amount of inventory hovers around 5 to 6 months. 3.9 months is well below that. In early 2008 when few [...]
Five Financial Reads
Calculated Risk: FDIC Lists 416 Problem Banks MyBudget360: California Lowering Tax Brackets (That is, Higher Taxes) The Street: Market Has Likely Topped Jesse’s Café: Fed Officials Unemployment Rate at 16% ZeroHedge: The new Bull Market Fallacy