Concerns about the housing market deepened yesterday as the nation’s leading real estate brokers’ group issued a more pessimistic outlook for the year, and two major builders cut their earnings estimates by hundreds of millions of dollars.
The news added to a growing unease about the economy and helped drive shares on Wall Street lower for the second straight day.
Cooling housing sector and declining consumer confidence cited by Freddie Mac; 30-year at 6.44 percent.
NEW YORK (CNNMoney.com) — NEW YORK (CNNMoney.com) — Mortgage rates slipped for the sixth straight week on continued signs of weakness in the housing sector and declining consumer confidence, Freddie Mac reported Thursday.
Mortgage demand is down and delinquencies and foreclosures are up, but just as the housing market bust is more of a soft landing, major financial institutions and most households aren’t likely to crumble under the weight of risky loans.
While the number of riskier loans has risen in the past few years, lenders still hold more traditional mortgages than subprime and "non-traditional" mortgages.
Among the smaller fraction of buyers who use subprime mortgages and the larger fraction that use "non-traditional" home loans, those who also purchased homes at a time when prices peaked in their market are most at risk for an individual bust.
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