Home-mortgage delinquencies up: Foreclosures at highest level in nearly 50 years

WASHINGTON — Mortgage delinquencies in the nation rose in the second quarter, and the foreclosure rate hit the highest level in almost half a century as more people lost their jobs, the Mortgage Bankers Association of America said yesterday.

The delinquency rate climbed to 4.77 percent from 4.65 percent the previous quarter. The rate at which mortgages entered foreclosure stood at 0.40 percent, up from 0.37 percent, said the trade group, which has tracked the rate since 1953.

The nation's unemployment rate averaged 5.9 percent in the quarter, up from 4.5 percent a year earlier. Rising delinquencies and foreclosures may prompt lenders to make fewer loans, hurting housing, which has been credited with underpinning the economy.

If data keeps coming in showing these unacceptably high foreclosure rates, you're going to see a tightening of the credit purse strings, and that won't be good for consumers," said Barry Habib, head of sales training for GMAC Mortgage, the nation's eighth-largest lender.

"When it comes time to sell your home, there'll be fewer people who have the ability to purchase it, and that affects how much you can charge for it," Habib said.

Delinquencies, defined as mortgages with payments at least 30 days past due, are at their highest level since the third quarter of 2001, when the rate was 4.87 percent.

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