Today’s Originations linkfest is solely focused on a 5 part housing series written by money manager Barry Ritholtz a couple weeks ago. Required reading for mortgage and housing watchers.
And as a bonus, Barry also posted a Bianco Research piece during the housing series on why foreclosures could still drive home prices lower. Here’s an excerpt and chart from the piece:
A 5% drop in home prices from current levels would likely push all the near-negative equity homes into the negative equity camp. In other words, a 5% decline in housing would mean at least 27% of homes would be underwater. A 10% decline, as predicted in the story above, would probably put one third of all mortgages underwater.