| Builders aren't the only ones seeing stock prices | | | | also beginning to see fallout from the high usage |
| slump from the weakening real estate market, | | | | of exotic mortgages over the past few years. An |
| mortgage lenders are seeing shares begin to sink | | | | increasing number of borrowers have chosen |
| as well.Countrywide Finanical has seen stock prices | | | | adjustable-rate mortgages over the past few |
| fall 20.9% since May 2006. Accredited Home | | | | years. With these products beginning to reset to |
| Lenders, a subprime lender, stock has fallen by | | | | higher interest rates, delinquency rates are |
| half. Thornburg Mortgage, an adjustable rate | | | | beginning to see slight increases. Delinquencies for |
| specialist, has seen stock fall by almost | | | | the first quarter of 2006 were up 0.1% when |
| 20%.Lenders are starting to see a gloomy | | | | compared to the first quarter of 2005, according |
| outlook as the real estate market continues to | | | | to the Mortgage Bankers Association."Borrowers |
| weaken. Borrowers are seeing higher prices to | | | | are missing more of their payments than before," |
| both purchase and build combined with higher | | | | said Matthew Howlett, an analyst at Fox-Pitt |
| borrowing costs. Sales of both new and existing | | | | Kelton.H&R Block reportedly has set aside $61.3 |
| homes were down 4% in July, according to the | | | | million to offset potential losses from its |
| National Association of Realtors, while the | | | | subsidiary, Option One Mortgage, due to delinquent |
| inventory of unsold homes is hitting high | | | | mortgage payments.The fear of a worsening, |
| levels.With fewer people taking out mortgages, | | | | even steep, housing slump will continue to result in |
| overall applications are down 25% for the | | | | investors continue to sell mortgage lender |
| year."The volume of loans is declining," said Bose | | | | stock.Martin Lukac represents and a finance |
| George, an analysist for Keefe Bruyette & | | | | web-company specializing in real estate and |
| Woods. "The market expects declines for the | | | | mortgage rates. We specialize in daily updates, |
| next few years. And that is obviously a drag on | | | | mortgage news, rate predictions, mortgage rates |
| revenue and earnings, because lenders will have | | | | and more. Find low home loan mortgage interest |
| to compete more aggressively."The market is | | | | rates from hundreds of mortgage companies! |