Mortgage Weekly Update - Last Week in Review
Foster Weeks publishes a weekly mortgage report which is updated every Monday morning. How is this affecting the San Francisco real estate market? Read our weekly and monthly market reports....last week was just plain the worst of times, as far as the financial markets around the globe were concerned. French bank BNP Paribas — the largest bank in France and second largest in Europe — touched off a crisis in Europe on Thursday when it announced that it couldn't determine the values of three of their mutual funds due to their containing US sub-prime mortgage investments, and actually prohibited withdrawals from these funds until a valuation could be made.
This led to a lack of confidence not only with their customers and investors, but also among all European Union banks. These banks, not knowing the extent of each other's investment exposure in US mortgage backed securities, suddenly realized they couldn't trust one another enough to lend each other money via normal inter-bank loans. This created an instant "liquidity crisis" in Europe, and Stock markets across the world reacted negatively as a result...
Read the entire report here.
- Foster Weeks
posted by SFResidence.com @ 7:48 AM
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