Lehman Brothers has estimated that about 2.8 million subprime mortgages will reset this year and next at a rate that is 30% higher than the so-called "teaser" rate. The investment bankers also forecast foreclosures to shoot up to about 1 million this year and next, quadruple last year's level.
Bull Radar
20 minutes ago
2 comments:
Damn....
That foreclosure rate sounds believable -- with the weakening economy and a saturated housing market, foreclosure will be the only avenue left.
What I want to hear is an estimate will happen down the line in 2010-11 when the all of alt-A and option adjustable ARMs reset. Nobody seems to want to go there just yet.
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