Wednesday, September 05, 2007

Foreclosure Rates Set New Record

According to the National Delinquency Survey from the Mortgage Bankers Association (MBA), the delinquency rate on residential properties was 5.12% for all loans in the second quarter of 2007. This is up 28 basis points from the first quarter of 2007 and 73 basis points from this time in 2006. Delinquency rates do not include loans already in the foreclosure process, which stood at 1.40% for all loans in the second quarter of 2007. Foreclosure rates are up 12 basis points from the first quarter of 2007 and 41 basis points from this time in 2006. National delinquency and foreclosure rates are being driven by several states and the performance of prime and subprime adjustable rate mortgages (ARMs). California, Florida, Nevada and Arizona lead the numbers in defaults and foreclosures and account for more than one-third of the nation's subprime ARMs. Thirty-four states showed decreases in new foreclosure rates.

Last week President Bush announced steps at the federal level to help homeowners avoid foreclosure and to reform the mortgage finance system. For more information, read the president's statements on homeownership financing and the fact sheet, "New Steps to Help Homeowners Avoid Foreclosure."

Read the MBA's press release, "Delinquencies Increase in Latest MBA National Delinquency Survey." For articles, check out "New Mortgage Foreclosures Set Record" from the Washington Post, "Home Foreclosure Notices Hits Record High" from FOX News, and "New Forecloure Rate Surges to Record" from NPR.

Want more information? Check out the library's guides on housing and banking.

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