Evander and Ed
But seriously folks, the Mortgage Bankers Association reported today (via HousingWire) that deliquencies are accelerating among prime borrowers faster than among subprime borrowers:
While foreclosure activity hit an all-time record in the first quarter, according to statistics released Thursday morning by the Mortgage Bankers Association, an alarming shift of the mortgage mess towards prime borrowers appears to be taking place as well — signaling that the credit crunch that began among those with less-than-perfect credit is now marching onward towards borrowers usually deemed better credit risks.
Of course a far higher percentage of subprime borrowers remain delinquent on their mortgages; but the trend is still worrisome. All the while, inventories are at record highs and climbing, while mortgage applications are plummeting.
Supply and demand at work folks. Rising supply and falling demand is a recipe lower prices.
Update: McMahon speaks