Before You Get Too Excited About Those Housing Numbers.
Like we have always said on this blog, "We'll smile about housing when either Ivy Zelman or www.housingdoom.com tells us it is time to smile." They are not smiling at Housing Doom.
There's a whole lot of foreclosures in the pipeline. Banks and servicers are simply holding them back and praying that Glinda The Good Witch of the North shows up and makes serious delinquent borrowers current again. Yesterday, it was brought to light by Fitch (via Clusterstock , via Calculated Risk) that cure rates for prime mortgage loans (curing is when a delinquent borrower is able to bring himself current) has fallen from 45% during the period 2000-2006, to 6%!!!! Prime mortgage delinquencies clocked a rate of approximately 5% in the second quarter. I have a strong feeling that that percentage has only increased in the third quarter.