RateAPY

Mortgage Deliquencies Are Up, Again

Posted by: RateAPY Bank Rates News
March 2nd, 2010

Mortgage delinquencies rose 21 percent from January 2009 to January 2010 according to Equifax. The main cause for the increase is unemployment which is now about 9.7%. Small businesses are normally the chief combatant against unemployment, but with credit tight, many small businesses are not able to answer the call of duty.

Mortgage Delinquencies Lead to Increasing Foreclosures

Foreclosures look to be increasing, threatening the stability of the housing recovery. In January 2010, 1 in 409 housing units received notice of foreclosure, up 15 percent from January 2009. Dann Adams, president of Equifax US Consumer Information Solutions says that, “There is a large segment of homes that are going to enter foreclosure in the next 3 to 6 months, which then puts more pressure on home prices. Celia Chen, senior director at Moody’sEconomy.com believes that new foreclosures could cause home prices to decline another 8 percent.

Check for the highest yields on savings accounts, money market accounts, and certificates of deposit. Get a free mortgage quote.