U.S. mortgage delinquencies and foreclosures continued to rise in the first quarter despite efforts to calm the nation's troubled housing market.
The Mortgage Bankers Association said Thursday 6.4% of mortgages were at least 30 days delinquent in the first quarter on a seasonally adjusted basis, up 53 basis points from the fourth quarter of 2007 and 151 basis points from the first quarter of 2007. The figure was the highest recorded in the association's survey since 1979.
The number of foreclosure starts and loans somewhere in the foreclosure process also rose in the quarter to the highest levels the association has seen since 1979.
The survey found 2.5% of loans were in foreclosure during the first quarter, an increase of 43 basis points from the fourth quarter of 2007 and 119 basis points from the first quarter last year.
This news indicates we'll see a swelling of inventory over the next 6-12 months. Inventory is already at sky high levels. That means prices are coming down.
