From John Kemp at Reuters – a chart showing the percentage of US residential mortgages where payments are 30 days or more overdue.
So, by the end of Q1 this year, almost 8 per cent of all US single family mortgages were classified as delinquent. That’s up from 3.73 per cent year-on-year – and a jump from 1.6 per cent at the end of Q1 2006.
Note that this spike is in spite of all the housing relief measures introduced by the US Treasury – and is happening at a time when official US rates are close to zero. As Kemp notes:
The deterioration has actually been worse than the raw headline numbers suggest, because it does not include the bad loans that have already been foreclosed (and therefore written off in most cases) over the last two years. If these loans were added back in, the delinquency rate would be far higher.
Related links:
FT series: US housing market