Monday, September 21, 2009

Report: Mortgage Delinquencies increase in August

by Bill McBride on 9/21/2009 11:09:00 AM

From Reuters: Mortgage Delinquencies Rise Alongside Unemployment (ht Ron Wallstreetpit)

Reuters reports that a record 7.58% of U.S. homeowners with mortgages were 30+ days delinquent in August, up from 7.32% in July ... and up from 4.89% in August 2008.

Reuters also notes that delinquencies are rising at "an accelerating pace".

This is one part of the coming "triple whammy" at the end of this year that Tom Lawler mentioned this morning: rising foreclosures, end of the Fed buying MBS, and the end of the housing tax credit.

We have to be a little careful with the delinquency numbers because they include homeowners in the trial period for modifications.

Note: This uses a different approach than the MBA. The MBA reported 9.24% of all loans outstanding were delinquent at the end of the 2nd quarter. Another 4.3% of loans were in the foreclosure process.