Are Things Getting Better or Worse in the Mortgage Market?

by Alex Stenback on May 20, 2010

The most recent (March, released yesterday) report from the Mortgage Bankers association on foreclosures and delinquency is giving mixed signals.

On the one hand, there’s a year over year decline in delinquencies for March.  On the other, the first quarter 2010 mortgage delinquency rate rose to 9.38% of all loans outstanding, which is up from 8.22% last year.

So is the problem getting better, or worse? 

It’s very hard to say – mainly because markets are still dysfunctional in many ways, so seasonal adjustments and other techniques to smoooth out data are probably not reliable.

The NYT says it best today:

“Any way you look at it, extraordinary numbers of people are having trouble paying their mortgage. What is less clear is the extent to which the problem is getting worse, better or is simply holding its own.”

One final note on foreclosures that might surprise you:  Sub-prime foreclosure rates are falling, while Prime, Fixed Rate foreclosures are on the rise [via Calculated Risk: "We're All SubPrime Now!" ]

{ 2 comments… read them below or add one }

Chuck May 25, 2010 at 7:01 am

“Any way you look at it, extraordinary numbers of people are having trouble paying their mortgage.”

typical non-talk from the NYT. Too many people got far too much debt than their income will ever be able to re-pay. No way out.

What does it take to “qualify” for a loan now? Approx. debt-to-income ? Does it vary by conforming/non-conforming? I see at CalculatedRisk that FHA only requires 3.5% downpayment.

PS – like your RSS feed. :-)

Laura Morton June 7, 2010 at 1:46 pm

Things are getting worse. Over 1.1 million people have given up looking for work (CNBC). Many of these are have a family, and a mortgage. How long can they hold on?
You suck it in and tighten the belt when you think that help is around the corner. Al they see around the corner is a semi ready to run them over.
We need jobs. Sustainable jobs. $10 an hour can’t feed a family and pay the mortgage too.

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