The number of home loans 30 days in arrears has risen two straight quarters, leading to new worries about the economy. Severely delinquent mortgages and foreclosures decline.
August 27, 2010|By E. Scott Reckard and Alejandro Lazo, Los Angeles Times
"Economists attributed the increase in newly delinquent mortgages to the country's persistently high unemployment.
'It takes a paycheck to make a mortgage payment,' said Jay Brinkmann, chief economist for the Mortgage Bankers Assn. He said the trend could lead to another increase in foreclosures if the employment picture doesn't brighten soon.
'Unfortunately, since April, there has been almost no job growth at all, so I think that is where the risk lies looking forward,' said Christopher Low, chief economist at Chicago investment firm FTN Financial.
The declines in serious delinquencies and foreclosures were caused in part by a since-expired federal tax credit for home purchases, Brinkmann said. The credit caused a brief spike in sales, allowing some late-paying borrowers to catch up by selling their properties."
'It takes a paycheck to make a mortgage payment,' said Jay Brinkmann, chief economist for the Mortgage Bankers Assn. He said the trend could lead to another increase in foreclosures if the employment picture doesn't brighten soon.
'Unfortunately, since April, there has been almost no job growth at all, so I think that is where the risk lies looking forward,' said Christopher Low, chief economist at Chicago investment firm FTN Financial.
The declines in serious delinquencies and foreclosures were caused in part by a since-expired federal tax credit for home purchases, Brinkmann said. The credit caused a brief spike in sales, allowing some late-paying borrowers to catch up by selling their properties."
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