Tuesday Headlines: Troubling Report on Alt-A Loans

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A few quick headlines from today worth noting:

Sales of new homes in May fell 1.6% from April’s rate and came in below expectations, at an annual rate of 915,000 units. The pace of sales is running 15% behind year-ago levels.

The Case-Shiller Home Price Index -- which we consider the most accurate measure of the probable change in value of a given home -- showed a decline of 0.5% of home values in Los Angeles from March to April, and 2.6% for the year ending in April.

And maybe the biggest housing story of the day: ‘Standard & Poor’s sees dramatic rise in Alt-A delinquencies.’ From Inman News: ‘Alt-A mortgage loans made in 2006 are going bad at more than four times the rate as similar loans made in 2004, analysts at Standard & Poor’s said Tuesday.’ Alt-A loans are a notch above subprime; this is a new development, and troubling for the mortgage business.

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Photo Credit: Reuters