Nationwide Foreclosures are at their highest rate EVER, and this isn't expected to peak until the middle of next year. The bulk of new homes in default is of conservative conventional loans, and is primarily a result of the high rates of unemployment.
A record one in seven U.S. mortgages were in foreclosure or at least one payment past due in the third quarter
U.S. mortgage delinquency rates and the percentage of loans that entered the foreclosure process also jumped to records from July to September, the Mortgage Bankers Association said on Thursday.
Rising job losses were behind the increasingly bleak portrait of the housing market in a trend that will continue into next year, the group said in data that adds to recent evidence of a still-struggling housing market.
record foreclosures will add to the growing supply of unsold homes, sapping the housing market as it attempts to recover from the worst slump since the Great Depression.
The MBA said the percentage of loans in foreclosure rose to 1.42 percent
"Foreclosures remain the biggest hurdle to the housing recovery," said Michelle Meyer, economist at Barclays Capital in New York.
"Foreclosures will be worse in the first part of 2010 and we do not see a peak in foreclosures until the middle of next year."
conservative, prime fixed-rate loans often sold to homebuyers with the highest credit ratings continued to represent the largest share of foreclosures started and were the biggest driver of the increase in foreclosures
In fact, 33 percent of foreclosures started in the third quarter were on prime fixed-rate loans and those loans were 44 percent of the quarterly increase in foreclosures, Brinkmann said.
Gloomy outlook, just when the housing market and recession appeared to have peaked for the worst...