Despite signs of an improving housing market, homeowners continue to be under financial stress. According to Reuters, the 30-day mortgage delinquency rate increased again in August, reaching a new all-time high.
The chart above shows significant year-over-year increases in the delinquency rate. The August ‘09 rate of 7.58% increased 55% versus the August ‘08 rate of 4.89%. Month-to-month, the rate increased 3.6% versus the July ‘09 rate, which was 7.32%.
This delinquency rate is an important number to watch, as it is a leading indicator of home foreclosures and personal bankruptcies.
Looks like we’re not out of the woods yet.
Last 5 posts in Loan Modification
- Bank Accidentally Sells House as Foreclosure - November 11th, 2009
- Loan modifications are lowering monthly payments - October 4th, 2009
- Successful Short Sales…I mean plural…more than one! - September 14th, 2009
- FHA Mortgages Now Qualify For Government Help - September 3rd, 2009
- Loan Modification Slowdown - August 28th, 2009
- Stumble it!
- Categories: Loan Modification, Mortgage Terms, Refinance, foreclosure, mortgages
Comments
3 Comments so far
Mortgage Delinquencies Accelerating at Fast Pace | Mortgage 101 Blog
[...] a graph from the Mortgages Unzipped blog that shows the delinquency trend over the past few years. It is definitely on the quick [...]
Loan Modification
Good stats. It does feel like the economy is getting better but this graph really shows our economic condition. Pretty disturbing I must say. Banks and gov should start listening to homeowners more and work with them to save more homes.
Ed
Let prices fall to where they are affordable. Affordable houses is a big part of the answer to our economic woes, not keeping prices high with government incentives/NAR lobbying. All aspects of a real estate transaction should also be transparent - especially the bidding process.