Record 9.6 Percent of Homeowners Are Behind On Their Mortgages

Posted on 19 November 2009

According to the Mortgage Bankers Association, a record percentage of Americans are now being late in paying their mortgages.

homeowners

The MBA said on Thursday that 9.64% of all loans were in delinquency in the third quarter. This was a rise from a record of 9.24% which prevailed in the second quarter and up from 6.99% which was a year ago.

As said by the MBA chief economist, Jay Brinkmann, job losses are the main reason for the deteriorating performance in mortgage payments.

The job losses have continued to increase and this has led to more delinquencies and foreclosures, because mortgages are paid with paychecks.

The increased level of delinquencies and foreclosures poses a threat to the economic recovery, as said by the economist Richard DeKaser of Woodley Park Research in Washington.

The recession in the housing market has also caused the Federal Reserve to hold short-term interest rates low. It’s also likely that the problems will continue into next year.

Most of the foreclosure problems continue to reside in states that already had problems such as Florida, California, Arizona, and Nevada.

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