Aug 8 2007
01:59 pm
By: Andy Axel  shortURL

Rough week in the subprime/Alt-A mortgage industry...

American Home Mortgage

Aegis Mortgage

National City Corp


Impac Mortgage

And it's hardly Wednesday.

This atop a rough year so far.


U.S. home sales will tumble to a five-year low this year as the widening credit crunch reduces the number of buyers who can get mortgages, the National Association of Realtors said today.

The group lowered its outlook for the eighth time this year and said sales of previously owned homes probably will fall 6.8 percent to 6.04 million in 2007, the lowest since 2002. New-home sales, which account for about 15 percent of the housing market, probably will fall 19 percent to 852,000, a 10-year low.

R. Neal's picture

Do you think this is finally

Do you think this is finally the final burst and that's the end of it? Seems like we're still feeling ripple effects from the last round, this one might last longer, but maybe it's over (after that)?

Somebody in FL told the Mrs. yesterday that home prices in Sarasota are down 30%, and you could buy a 3.2 for what you had to pay for a 2.1 not long ago.

You gotta feel sorry for folks who bought the 2.1 at the peak, though.

Andy Axel's picture


I dunno. That's at least five lenders taking a nosedive in the last 3 days, and you still have big specialists like Countrywide and HSBC sending out warning flags against profitability.

I certainly hope there's a cooling off. But like watching the weather forecasts, there's not much in evidence of a positive trend yet.


I'm a guy in a Reagan mask -- and I'm running for President!

Tess's picture

National City is my mortgage

National City is my mortgage company.

Sven's picture

The roller coaster ride has just begun

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Andy Axel's picture

Bloomberg reporting that

Bloomberg reporting that new home sales are expected to fall to a 10-year low when the government figures come out in 2 weeks... post updated.


I'm a guy in a Reagan mask -- and I'm running for President!

R. Neal's picture

And it just gets

And it just gets better....

NEW YORK - Wall Street plunged in early trading Thursday, yanking the Dow Jones industrials down nearly 170 points after a French bank said it was freezing three securities funds that struggled to find liquidity in the U.S. subprime mortgage market.

The announcement by BNP Paribas raised the specter of a widening impact of U.S. credit market problems. The idea that anyone — institutions, investors, companies, individuals — can't get money when they need it unnerved a stock market that has suffered through weeks of intense volatility triggered by concerns about available credit.


Andy Axel's picture

I read that on Atrios

I read that on Atrios earlier.

The nub: Paribas analysts basically said that you have no idea what something is worth when you have a lot of something that no one will (can?) buy.


I'm a guy in a Reagan mask -- and I'm running for President!

bizgrrl's picture

Wall Street gave up a

Wall Street gave up a moderate gain in late trading and closed marginally lower Monday after the Federal Reserve and other central banks added more cash to their banking systems, helping investors set aside some concerns about credit tightness.
The New York Fed, ... minutes after the opening bell announced $2 billion in overnight repurchase agreements.

The Fed's "repo" follows a move by the Bank of Japan to put $5 billion into the markets and an addition by the European Central Bank of $65.3 billion; the ECB added more than $200 billion last week. The moves, following similar injections by the Fed last week, appeared to placate Wall Street for now and allowed it to look ahead to a week of fresh economic data. Since Thursday, the Fed has added $62 billion in liquidity.

Last week's trading showed that the most predictable thing about the markets lately is high volatility.

Barron, chief executive of Knott Capital in Exton, Pa., "He sees the fallout from an overheated housing market and an overextended consumer as just beginning to emerge."

I hope this is just scary rhetoric and is not as scary as it is beginning to sound. Any one remember 1983 and S&Ls?

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