The big number I was waiting for today was the US Consumer Confidence level . The consensus was for 57.00 but the number came way lower at 49.30. How can they have confidence when their looking at their friends and neighbors loosing their jobs daily. Tomorrow the car sales numbers come out with an estimate of 8.6m
Another number that came out was the
US - Redbook (wk6/27,2009) Store Sales Y/Y change which came in at -4.30% . I'm not a bit surprised there as the personal savings number that came out last time was up.
US - Redbook (wk6/27,2009) Store Sales Y/Y change which came in at -4.30% . I'm not a bit surprised there as the personal savings number that came out last time was up.
Then later in the day we got the terrible news of the Delinquencies Rise in the prime mortgage market. This number rose by more than double. Prime mortgages 60 days or more past due climbed to 2.9 percent of such loans through March 31 from 1.1 percent at the same point in 2008. Well you can't really be surprised with the continued job loss of around 600,000 each time the number comes out. Also there are many that took wage cuts or are on short time that are now struggling with payments. Foreclosure filings crossed 300,000 for a third straight month in May, according to RealtyTrac Inc., and the U.S. economy has lost about 6 million jobs since the recession began in 2007.
Serious delinquencies on prime loans, which account for 2/3 of all U.S. mortgages, rose to 661,914 in the first quarter from 250,986 a year earlier, according to the report. Overall, mortgages 60 days or more past due rose 88 percent from last year, according to a report by the Office of the Comptroller of the Currency and the Office of Thrift Supervision .
Data also showed a continuing emphasis on preventing avoidable foreclosures to keep families in homes and mitigate losses, as servicers continued to implement more home retention actions (loan modifications and payment plans) than home forfeiture actions (foreclosures, short sales, and deed-in-lieu-of-foreclosure actions). Prime borrowers received about twice as many home retention actions as home forfeiture actions, while subprime borrowers received more than seven times as many.
“While I’m very concerned about the rise in delinquent mortgages and foreclosure actions, the shift in emphasis by servicers to more sustainable, payment-reducing modifications is a positive step that should show significant benefits in the coming months,” Comptroller of the Currency John C. Dugan said. “In addition, as the Administration’s Making Home Affordable program gains traction and helps offset the impact of this very difficult economic cycle, we should continue to see progress in future reports.”
“We continue to drill deeper into the mechanics of foreclosure prevention actions, thereby gaining more insight into what works,” said OTS Acting Director John E. Bowman. “This report provides a valuable roadmap for how financial institutions can best ensure that more Americans will stay in their homes.”
The report covers the performance of 34 million loans totaling more than $6 trillion in principal balances from the beginning of 2008 through the end of the first quarter of 2009. The impact of the increase in modifications, particularly those with reduced monthly payments, will be seen only in future data. Likewise, data presented in this report do not reflect modifications made under the Administration’s Making Home Affordable program, which was announced in March and began to be implemented after the reporting period, and changes to the Hope for Homeowners program.
Prices of U.S. single-family homes declined in April from the prior month,but the pace of the decline moderated, suggesting stability is emerging in someregions, according to Standard & Poor's/Case Shiller home price indexesreported on Tuesday. The index of 20 metropolitan areas dipped 0.6 percent in April from March,
after a 2.2 percent decline the month before, for an 18.1 percent downturn from
a year earlier.
after a 2.2 percent decline the month before, for an 18.1 percent downturn from
a year earlier.
For details, see [ID:nNYS005189] Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
0844 ET 30June2009-Bove raises price target on State Street
0844 ET 30June2009-Bove raises price target on State Street
Remember the first shoe to drop was the sub-prime catastrophe . Could the job losses be the second. The banks were stress tested to 10% unemployment and I wonder how much of the prime mortgage was taken into account. Dare I say that we will get round two of stimulus spending.
Links for further news on this post http://www.ots.gov/
Another interesting link for the day
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