Foreclosures and delinquencies continue to rise
According to data released by the Mortgage Bankers Association (MBA), foreclosures rose 0.29% in the first quarter of 2009 over the last quarter of 2008. After adjusting for seasonal factors, the delinquency rate rose 1.24% from the last quarter of 2008, to 9.12% of all loans outstanding as of the end of the first quarter. The current delinquency rate, which includes loans that have at least one payment past due, is the highest in the last 36 years. The combined percentage of loans in foreclosure and at least one payment past due, was 12.07% on a non-seasonally adjusted basis, the highest ever recorded in the delinquency surveys conducted by the MBA so far. Jay Brinkmann, MBA’s chief economist, said that “the pace of foreclosures has stepped up considerably.” Economists have predicted that unemployment will not decline until mid-2010. Since unemployment is a leading indicator of mortgage performance, there may be no significant reduction in foreclosures and delinquencies until mid-2010.
