New York, New York (PressExposure) July 29, 2009 -- "Source One International": The US housing market continues its decline despite government initiatives to stem the tide of foreclosures.
Analysts at "Source One International" are reportedly mindful of the fact that delinquencies of mortgages in the prime sector are showing signs of accelerating. The consensus is that rising unemployment is having a greater impact upon otherwise credit-worthy borrowers than economists expected.
By contrast, foreclosures in the subprime mortgage market are beginning to level out according to data released by the Mortgage Bankers Association. Still, sources close to "Source One International" believe that is simply because there aren't as many subprime borrowers left to foreclose.
The source added that the foreclosures were preventing a recovery in US housing by adding ever more inventory to an already saturated market.
"Source One International" have previously expressed incredulity at investor optimism arising from figures showing that the number of housing starts in US have risen arguing that more properties on the market merely add to downward pressure and further frustrate efforts to stabilize prices.
The US housing market began its decline in earnest at the start of the subprime mortgage debacle that developed in the most destructive financial crisis in decades. Banks and financial companies have lost more than $1 trillion since 2007 after writing down the value of collateralized debt obligations backed by properties bought with subprime mortgages.