U.S. home mortgage delinquencies set record at 7.58%

September 21, 2009 by · Leave a Comment
Filed under: Real Estate News 

This type of data is putting a kink into the recovery talk we all keep hearing.  It will be interesting to see the jobless numbers coming out later this week.  The U.S. stock market has been climbing so hopefully that will translate into job growth and tame inflation.  We will just need to hold our breath at this point and see what happens.

Reuters,  New York – High U.S. unemployment keeps pushing up the rate of mortgage delinquencies, which could in turn drive personal bankruptcies and home foreclosures, monthly data from the Equifax Inc credit bureau showed on Monday.

Among U.S. homeowners with mortgages, a record 7.58 percent were at least 30 days late on payments in August, up from 7.32 percent in July, according to the data obtained exclusively by Reuters.

August marked the fourth consecutive monthly increase in delinquencies, and the report showed an accelerating pace. By comparison, 4.89 percent of mortgages were 30 days past due in August 2008, while in August 2007, the rate was 3.44 percent, Equifax data showed.

The rate of subprime mortgage delinquencies now tops 41 percent, up from about 39 percent in each of the prior five months.

The results, which correlate with consumer bankruptcy filings, suggest U.S. homeowners remain under financial stress despite signs of improving sentiment and fundamentals in the U.S. housing market.

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