Earlier today, we noted that the seasonality effects of Housing were re-asserting themselves.
This is a very different phenomena than the ongoing crisis: That was caused by the credit bubble, which in turn led to wildly overvalued Housing, which was purchased by people who often could not afford them, which in turn led them to subsequently become delinquent, then default, and finally slide into foreclosure.
Along those lines, the following pair of charts (via Realpoint) should get your brains racing: It appears that despite the various voluntary foreclosure abatements, the problem has not yet been solved. Banks continue to rack up serious unpaid mortgages, which over time is very likely to lead to increased foreclosures . . .
Future Workouts – Delinquency Categories
Unpaid Balance for 2005, 2006 and 2007 Vintage Transactions
Monthly Delinquency Report – Commentary