Delinquencies and Foreclosures UP!
The Mortgage Bankers Association (MBA) reports that "The delinquency rate for mortgage loans on one-to-four-unit residential properties stood at 4.95 percent of all loans outstanding in the fourth quarter of 2006 on a seasonally adjusted (SA) basis, up 28 basis points from the third quarter, and up 25 basis points from one year ago".
If you've been listening the the financial news lately, you've heard the term "subprime loans" associated with the recent stock market activity. The MBA also refers to the subprime loans: "The increase was driven by increases in delinquencies for all major loan types, most notably for subprime and FHA loans. Delinquency rates for prime, subprime, FHA, and VA loans increased on a seasonally adjusted basis relative to the third quarter. The delinquency rate for FHA loans reached a new record in the fourth quarter."
To read more: Mortgage Bankers Association