Mortgage debt to shrink over next several years: KBW
Mortgage LoanEven if home prices and household leverage stabilize next year, mortgage debt outstanding will continue to contract over the next several years because of high credit losses, according to analysts at financial services firm Keefe, Bruyette & Woods. “Given the high delinquency rates, large discounts in private label securities prices and large provisions already taken by banks, in our view it is clear that a meaningful percentage of loans will default and not be replaced by new loans as the homeownership rate continues to contract,” the analysts say. “This trend is […]