Mortgage delinquency, foreclosure rates surge to new records in Q3
* The overall mortgage delinquency rate rose again to 6.99% from 6.41% in Q2 2008 and 5.59% a year earlier. This is yet another record high for the delinquency rate (the MBA data goes back to 1979).
* The subprime DQ rate resumed its rise -- climbing to 20.03% from 18.67% in Q2 2008 and 16.31% a year earlier. This is a fresh high. And as I have noted several times, this mortgage crisis stopped being just about subprime long ago. The prime-only delinquency rate rose to 4.34% from 3.93% in Q2 2008 and 3.12% a year earlier.
* Delving further into the numbers, Prime ARM DQ rates rose to 8.2% from 7.49% in Q2 2008, while subprime ARM DQs climbed a bit to 21.31% from 21.03%. Meanwhile, the DQ rate on FHA loans inched up to 12.92% from 12.63% a quarter earlier.
* The percentage of mortgages entering the foreclosure process dipped ever so slightly -- to 1.07% from 1.08% a quarter earlier. But the overall percentage of mortgages in any stage of foreclosure rose again to 2.97% -- up from 2.75% in Q2 2008 and 1.69% a year earlier. A whopping 12.55% of subprime mortgages are now in some stage of foreclosure.