Saturday :: Jun 7, 2008

Ouch


by Mary

The NY Times reports that almost 1 out of 11 mortgages in the United States are in trouble. (h/t Economist's View)

And just look at how it affects the country.

0606-biz-webMORTGAGE.jpg

New York Times image

As the Times reports:

The first three months of 2008 marked the worst quarter for American homeowners in nearly three decades, according to the report, issued by the Mortgage Bankers Association. The rate of new foreclosures and past-due payments surged to their highest level since 1979, when the group first started collecting the data.

All told, about 8.8 percent of home loans were past due or in foreclosure, or about 4.8 million loans. That is up from 7.9 percent at the end of December. (About a third of American homeowners do not have mortgages.)

And we know that this situation will continue to get worse throughout this year. Remember that Credit Swisse chart that showed when interest rates would be resetting? The "You are here" was dated January 2007. It looks like we've just started on the Option Arms rates resets.

rate reset
Mary :: 5:52 PM :: Comments (11) :: Digg It!