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Homes Entering Foreclosure at Record

Written by

John Hunter

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Some pretty amazing statistics are in this article – Homes entering foreclosure at record:

Delinquencies hit 5.12 percent of all outstanding mortgages, up from 4.39 percent a year ago, the Mortgage Bankers Association (MBA) said in a quarterly survey.

Serious delinquencies, those 90 days or more late, jumped to 1.11 percent of all loans, from 0.98 percent in the first quarter. The loans actually entering foreclosure proceedings stood at 0.65 percent, a rise from 0.58 percent in the first three months – and the highest rate in the MBA’s 55-year history.

This quote however is a bit misguided I think:

More Americans are falling behind in their mortgage payments as stagnant home prices, auto-industry weakness and climbing interest rates have taken a toll on housing affordability.

Stagnant home prices have not taken a toll on housing affordability. Yes people that put nothing down and took out mortgage where they could not pay the monthly payments and planned to just borrow even more from the house if the house price went up can’t afford it – but they couldn’t afford it in the first place.

Related: Learning About Mortgages – Mortgage Defaults: Latest Woe for Housing – Ignorance of Many Mortgage Holders – Median Housing Prices Down 1.5% in the Last Year – How Not to Convert Equity

Comments

2 responses to “Homes Entering Foreclosure at Record”

  1. Jumbo and Regular Mortagage Rates By Credit Score at Curious Cat Investing and Economics Blog

    In the last 6 months the premium for jumbo loans has increased from a very small premium to over 100 basis points for high credit scores…

    Reply
  2. Curious Cat: Foreclosure Filings Continue to Rise

    The numbers really are astounding. How lame were the decisions of banks and mortgagees that nearly 1 in 40 mortgages are in default (and that number likely increasing in the next year to much more)?

    Reply

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