CNN reports some incredible facts as it relates to the mortgage industry.
The Mortgage Banker’s Association (MBA) 3rd Quarter Reports indicate some pretty unbelievable statistics about the state of foreclosure and delinquency:
- 9.64% of all mortgages are in delinquency
- 4.47% of all mortgages are in foreclosure
- Added up, a total of 14.41% of mortgages are delinquent or already in foreclosure!
- Over 50% of these delinquencies are on PRIME, fixed-rate mortgages (not the typically-blamed sub-prime mortgage!)
- FHA loans, while having grown significantly, are also showing increases in delinquency rates
- 43% of all delinquent mortgages are in California, Florida, Arizona, and Nevada
- … and the number of loans that are delinquent or in foreclosure now for the first time exceeds the number of homes that are for sale!
This is truly staggering information and demonstrates the growth and persistence that can be expected in the short sale and preforeclosure market. What I found most intriguing about this was that it isn’t just sub-prime borrowers that are the root of the mess – even those with fixed rate mortgages are in trouble.
Post your comments! Much like the post earlier today, what do you think this means for the state of the economic recovery and the housing recovery in particular?
-Nick
