Record High for Mortgage Delinquencies

During the first quarter, there were a record number of mortgage delinquencies this year–the highest, at least, since surveys of mortgage payments were established in 1972.

Though the government has been making valiant efforts to curb the crisis, it seems that job losses are simply stronger than the government. Even so-called reliable borrowers with the best credit ratings are experiencing difficulty with payments–and even foreclosure.

The delinquency rate overall is just over 12%. At this time last year, it was 8%.

There’s another first for the banking industry as well: prime loans, typically safe, resulted in the largest percentage of foreclosures, at 49.8%. Another 43.2% were subprime loans. This is an indicator that the recession, and job losses, are hitting the housing market hard, and are perhaps to blame rather than loan providers in many cases.

That said, mortgage rates themselves are pushing down heavily upon the average homeowner. Rates are as high as 5.5% this week, creating a need–or at least, an incentive–for at least half of U.S. homeowners to refinance. These increases are attributed to investors’ concerns over growing government debt.

Even with this increase, rates are still lower than last year’s 6.08%. Still, a rise at all can threaten many homeowners today, as well as potential buyers–especially those who have lost, or fear they will lose, their jobs. And though government intervention may help once applied across the board, it cannot control long-term interest rates.

56% of the housing crisis is occuring in just four states–California, Florida, Nevada and Arizona. The highest rate, however, is currently in New Mexico, at 5.59%.