Thursday, August 26, 2010

Delinquent Loans still above 14% nationally

I thought this chart was interesting:

delinquent mortgage loans

chart credit to CalculatedRiskBlog.com

  • Good news – we’ve been moving sideways for about a year now, maybe a bit longer.
  • Bad news – 14%..!  That’s approximately 1 out of every 7 mortgage loans in the US in some state of delinquency.
  • Good news – we saw the worst of the unemployment in 2009, as UE spiked from 5% to 10%, and yet we didn’t see a corresponding spike in distressed mortgage loans.  (… yet?)
  • Bad news - “real unemployment” is much higher than 10%, and isn’t showing signs of decreasing anytime soon.

Are we is a state of consistency right now, or will we see another upward trend over the next year as a result of the consistent high unemployment economic environment we’re in?

That’s the billion dollar question…

Your wishes he knew the answers Realtor,

Chris Butterworth