·
The Mortgage Bankers' Association today reported that foreclosures
started on all mortgages rose to a still low 0.78% of mortgages
outstanding. Nevertheless, that was by far the highest foreclosure rate
on record.
· Foreclosure rates on both prime and subprime mortgages rose sharply. Rates for prime FRM rose to 0.22% of loans issued from 0.18% in 2Q and an average of 0.14% last year. 28 million loans were serviced.
· Foreclosures
on prime ARMs similarly rose to 1.02% from 0.62% and from 0.30% last
year. 6 million of these loans were serviced.
· Foreclosures on subprime mortgage debt, however, rose much more sharply as employment growth slowed recently and interest rates rose. In total, foreclosures on subprime mortgages rose to 3.12% of outstanding loans. That amounted to 6 million loans. The rise was evenly spread between fixed and variable rate loans.
·
Foreclosures on subprime fixed rate debt rose to 1.38% of loans
outstanding for a total of 3 million loans serviced.
· On variable rate subprime debt, however, foreclosures soared to a 4.72% rate, up from 3.84% in 2Q and up from 2.0% last year. Three million loans were serviced.
· The Rise and Fall of Subprime Mortgages from the Federal Reserve Bank of Dallas can be found here.
· These data series are available in Haver's MBAMTG database.