(via Calculatedrisk blog)Mortgage delinquencies keep rising nationwide as reported by Freddie Mac & Fannie Mae
Until the delinquency rate starts to fall I seriously doubt home prices or new home construction will do anything beyond stumble along.
One hidden benefit from all the loans going bad is pre payment speeds have sped up for various mortgage backed securities. I have noticed a bump in principal paydowns beyond normal and I think its all the mortgages being purchased out of pools by the GSE's. Considering I own a wad of leveraged inverse floaters at below par I'm happy with that.