Market Watch has a good synopsis of todays mortgage lender related events that caused another drop in the DOW. American Home Mortgage and Indy Mac two major mortgage companies reported bad news today.
I think the big fear is that not all of these problems are related to the subprime market but may be moving over to the prime loan side. The news from AHM and Indy Mac coupled with concern over the increasing number of foreclosures may be causing panic in the streets .. so to speak.
The problem is that no one knows if the difficulties of these companies mean that A rated borrowers will have problems obtaining loans for home purchases or if the problems will continue to be relegated to the poor credit risk market.
I know a few of my buyers are very concerned about how this will affect home loan rates. Consumers who have a lot of stock are worried what the sell off may mean to their portfolios. So far the Beach Cities have managed to escape many of the housing troubles that are facing other parts of CA. Let's hope it stays that way.
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