U.S. foreclosures, delinquencies set new records

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The percentage of homes foreclosed upon and delinquent mortgages hit all-time highs in the first quarter of this year, the Mortgage Bankers Assn. reports today.

Foreclosure actions began on 1.37% of first mortgages in the first quarter, according to the MBA’s national delinquency survey. The delinquency rate -- loans with missed payments but not in foreclosure -- rose to a seasonally adjusted 9.12% of all loans outstanding.

Those percentages were the highest in the MBA’s records, which go back to 1972.

MBA chief economist Jay Brinkmann called the latest figures ‘sobering but not unexpected.’ The jump in foreclosures was to be expected as various temporary foreclosure freezes by governments and lenders expired.

Brinkmann noted foreclosures on prime, fixed-rate loans doubled last year, and prime mortgages now comprise the largest share of new foreclosures. ‘More than anything else, this points to the impact of the recession and drops in employment on mortgage defaults,’ he said.

In other words, foreclosures are moving up the price ladder from sub-prime to prime territory.

The Census Bureau, meanwhile, reported today that new home sales continue to languish. They were down 34% in April from April 2008. Sales rose slightly in April above March, posting a 0.3% month-to-month gain, which the bureau noted was statistically insignificant.

--Peter Y. Hong