Rising Unemployment Not Helping Vancouver Foreclosures

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Rising Unemployment Not Helping Vancouver Foreclosures

March 16th, 2009

Rising unemployment is driving higher rates of Vancovuer foreclosures as well as cities and states all over the country.

The Mortgage Bankers Association says the pain is spreading to places that have so far been fairly isolated from major foreclosure problems. For example, mortgage delinquency rates are rising in Louisiana, New York, Georgia, Texas and Mississippi as job losses rise.

Mortgage bankers say job losses are changing the cause of delinquencies. Previously, more than half of foreclosures involved adjustable-rate mortgages. Today, the rate of delinquency on fixed-rate mortgages is rising, according to the bankers.

Mark Fleming, chief economist at property analytics firm First American CoreLogic, expects unemployment to peak in early 2010. He also expects housing depreciation to continue until the job market turns around.

Source: Investor’s Business Daily, Amy Reeves (03/12/2009)

via REALTOR® Magazine-Daily News-Rising Unemployment Not Helping Foreclosures.