"As expected, the mortgage sector continued to experience increases in the delinquency rate due to worsening economic conditions in both the labor and financial markets," said a senior consultant in TransUnion's financial services group.
Borrowers who were 60 days or more behind on their mortgage payments rose to 5.22 percent for the first three months of the year, TransUnion said. That's 62 percent higher than the 3.23 percent delinquency rate for the first quarter of 2008.
Nevada, Florida, Arizona and California continue to be the hardest-hit states, while North and South Dakota, Alaska and Wyoming remain the states with the lowest delinquency rates.
Hawaii saw the biggest increase in delinquencies from the fourth quarter of 2008 to the first quarter of 2009, with a 35.5 percent jump.
4 comments:
I think, as the trends suggest Mortgage Delinquencies are on the way ahead.
Government efforts to cut foreclosure rates have not been enough to offset the impact of the recession on struggling borrowers, the data from the Mortgage Bankers Association showed. And borrowers once considered reliable are now helping drive the foreclosure crisis, which looks likely to extend into next year.
The majority of the foreclosure problems remain centered in four states where home prices spiked the highest and are now in freefall.
California
Nevada
Arizona
Florida
Higher rates of delinquency indicate that the recession is far from being over.
@ chrisanwers
I agree completely agree that the recession and housing market crisis is 'far from being over'
According to Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Economics.
“The delinquency rates continue to climb across the board for prime fixed-rate and subprime fixed-rate loans, loans whose performance is driven by the loss of jobs or income rather than changes in payments,”
“While California, Florida, Nevada, Arizona and Michigan continue to dominate the delinquency numbers, some of the sharpest increases we saw last quarter in loans 90 days or more delinquent were in Louisiana, New York, Georgia, Texas and Mississippi, signs of the spreading impact of the recession,”
The Obama Admin in Washington should come up with a second stimulus plan to HELP US.
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