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Is the "Pig in the Python" Back?

June 24, 2021 by Ivy Zelman & Rachel Rockey

In 2009, when distressed activity was top of mind, we were vocal in our concern that the buildup of foreclosure moratoriums was portraying a false sense of security at a time when industry participants and investors were hoping for a bottoming out in the market. Our views were justified as home sales remained weak through 2011 and home prices continued to deflate. Today, our view is different. While moral hazard risk remains, particularly if the economy rolls over, we still believe the increased rhetoric of late related to foreclosure risk is overhyped.