Quote:
Originally Posted by Firebot
Here is the thing about this article. Mortgages in arrears have increased, but the total of mortgages in arrears is 0.33%. For comparison, the peak for Alberta in the last 25 years is 0.84% in early 2011.
Also for comparison, the US total mortgages in arrears at the start of 2007 was 2%, 3.69% at the start of 2008, and peaked at 11.26% of all mortgages in 2010.
Over 10% of all mortgages in the entirety of the US was in arrears in 2010. Let that sink in for a second. We are at 0.33% in the middle of one of the longest recessions in Alberta's history.
We still have a long ways to go before we see anything significant...people don't understand just how big of a house of cards the US mortgage industry was built upon.
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I read a bit about the US crash, after I read the Michael Lewis book. Crazy to think that people were getting mortgages and missing their first (!) payment.