Categorized | Investing

Missed Mortgage Payments Continue to Rise

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Investors have yet another reason to worry about the residential real estate market in the United States. As the unemployment rate continues to remain at high levels, reports are now showing that the number of delinquencies in mortgage payments has once again risen to nearly eight and a half percent.

The increase in missed and late payments is not a good indication for the housing market, as it solidifies the perspective that the market is getting worse. Many analysts had hoped that the delinquency rate would reverse its trend by decreasing this quarter. However, their hopes were dashed, as the improvements that were seen through the previous year are quickly being negated.

The rise in missed payments, though, is not exactly a surprise. The figure is generally linked to the rate of unemployment, which continues to remain at a high level.

Ironically, both the State of California, and also subprime borrowers across the country saw their delinquency rate decrease. Those two groups have generally accounted for a large number of loans that had missed payments. However, experts believe that the numbers for these two groups have declined due in part to the banks having worked out their bad loans earlier than others as a result of the real estate crash.

The overall increase in delinquent mortgage payments over the last quarter can be attributed to prime borrowers, as their rate of missed payments jumped to almost six percent.

If there is one piece of good news that has come from the most recent delinquency report, it is that the rate of the most serious delinquencies, which are those with loans that have missed three or more payments, has declined across the country.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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