Freddie Mac released their mortgage delinquency figures today and they nearly doubled from February 2009. Their reported mortgage delinquency rate for February 2010 is 4.08%. This is an increase from January's 4.03% rate. For February 2009, Freddie Mac reported a delinquency rate of 2.13%.
On the multi-family loans, the delinquency rate was 0.17 percent of the portfolio, up from 0.15 percent the prior two months and more than double the 0.08 percent in February of last year.
Freddie Mac announced yesterday that they were relaxing their lending standards on Florida condominiums. Freddie Mac will back mortgages on units in financially troubled condo developments as long as the seller's loan is already owned or securitized by the mortgage finance company. GRANDPA: say what? Your delinquency rate has doubled in a year and you are relaxing lending standards!
The equity market will simply roll with the delinquency punches as the Quant robots will not let a doubling of delinquencies slow down their mandate to fill the bubble. The following is a classic market disconnect from reality or more commonly referred to as "good old fashioned market manipulation".
Popular REIT ETF's (while delinquency rates have doubled...):
IYR is 2% from it's 52 week high and up 96% since 3/31/09
RWR is 2.7% from it's 52 week high and up 104% since 3/31/09
REZ is 3% from it's 52 week high and up 83% since 3/31/09
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment