Trouble In ABS-Land

Submitted by Rich Toscano on December 7, 2005 - 9:37am

A couple of my fellow online housing pundits have beaten me to the punch on this article, but it's an important one so I thought I'd link to it as well. It's a Bloomberg article on the declining demand for subprime mortgage-backed securities. The market finally appears to be pricing in the risk of people defaulting on these mortgages. If the trends described in the story keep up, which they likely will, it's going to be a lot harder for less well-to-do homeowners/homebuyers to refinance/buy at such low rates.

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