Mortgage delinquencies climb as people struggle with debt problems
Recent numbers on mortgages shows that some Americans continue to have trouble dealing with debt problems.
The Mortgage Bankers Association noted recently that delinquencies on home loans came to 9.64 percent during the third quarter, which is an increase of 0.4 percentage points over the second quarter. When compared to the same time last year, delinquencies are up by 2.65 percentage points. The MBA’s numbers cover homes that contain from one to four units.
Jay Brinkmann, chief economist for the MBA, noted that rising unemployment continues to put pressure on people as they struggle with budgeting after losing their income.
This is despite the fact that the economy has seen recent improvements. For example, the third quarter also saw 3.5 percent growth in the nation’s gross domestic product, which indicates to many that the largest recession since World War II has finally come to an end.
“Job losses continue to increase and drive up delinquencies and foreclosures because mortgages are paid with paychecks, not percentage point increases in GDP,” Brinkmann said.