Monday, August 24, 2009
Hanging on the house
(Top 10% of US earners represent about 23% in consumption. They are cracking. The middle is frozen, Walmart and Kohl's are not speaking about a new normal because they like the Pimpco blog. -AM)
This graph shows the delinquency and in foreclosure rates for all prime loans.
Prime loans account for all 78% of all loans.
Back in the 2000 to 2006 period, 45% of those delinquencies cured. Now, according to Fitch, only 6.6% cure - and a large percentage of those "cures" are modifications - and there is a large redefault rate on those loans.