Tuesday, September 2, 2008

(Residential) construction loans in the tank

Reports are that 8.1% of new construction loans are currently delinquent. (And no, that term is not an oxymoron.) That number is even higher in Chicago, where the mark is 10.8%.

What's driving this? Too many empty condos and subdivisions. The residential market's troubled, so that's where we stand.

A good tidbit was in the last paragraph: commercial delinquencies are only 4.1%. We don't know the local number. Hopefully this means we're not in for a bloodbath on that side of the world.

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