Less Bad is Still Not Good
Despite some recent signs of improvement in the labor market and other macroeconomic indicators, the mortgage foreclosure problem continues to roll along. The Mortgage Bankers Association (MBA) reports that during the first quarter of 2010 mortgage delinquencies increased to account for 10.1 percent of all outstanding loans. The report does note some issues with seasonal adjustment factors for delinquencies and when examining the data on a non-adjusted basis borrowers appeared to be falling behind at a slightly slower rate. Nonetheless, the share of loans in the 30 and 60-day delinquency buckets remains very high and the housing market will almost certainly be saddled with more inventory as many of these homes enter the foreclosure process in the coming months, especially given the long-term unemployment spells plaguing many households.
05-21-2010 9:16 PM