How Low Can it Go? Much Lower!

Last week we asked “How Low Can it Go?” regarding the Alt-A mortgage market, which includes loans to people with decent credit. That market is sinking quickly, a sign that the housing crisis has spread well beyond subprime loans.

Yesterday, it went a little lower: Moody’s investors downgraded more pools of securities backed by Alt-A loans, citing delinquencies and foreclosures. “It’s pretty clear that Alt-A is getting messy,” noted Housing Wire.