Not one in Ten after All

It is a common belief that one in every ten mortgages are defaulting. There
are some places I travel to like Victorville California (where I am flying to today)
that have a much higher rate than one in ten. The new default rule seems to be closer to one in eight according to the Mortgage Brokers Association.

Mortgage delinquencies for U.S. homes in the fourth quarter of 2008 rose to a new record high, with one homeowner out of eight behind on one or more mortgage payments, according to a report from the Mortgage Bankers Association on Thursday.

The result is above the 6.99% rate reported in the third quarter, the previous record high.



The organization also said that foreclosure rates in the United States reached a record 3.3% in Q4, compared to a 2.97% rate in Q3 and a 2.04% rate in Q4 2007.

The report found that 5.06% of prime mortgages were considered delinquent, compared to 4.34% the prior quarter, and 21.88% of subprime mortgage holders were behind on payments, up from 20.03% previously.

I will keep you posted when the number dropr drom one in eight to one in???

-Christopher Rockey