A Dream House or A Housing Nightmare


Inquiring minds would probably yell out ‘NIGHTMARE!!!”. Just look at the graph above. In another ominous sign for the economy, the number of people falling behind on their mortgages for the first time is on the rise and can be seen with the red line.

This grim statistic is only the latest bad news for a reeling US economy. Think about it…home sales are in free fall, initial jobless claims remain high and the gross domestic product slowed to a near halt in the second quarter, government reports issued this week showed. And now, this:

The increase in short-term delinquencies is leaving some experts wondering whether a new round of foreclosures is on the horizon, even as the current wave begins to ebb.

Some 3.51% of borrowers were 30 days late in their loan payments in the second quarter, up from 3.31% at the end of last year, according to new data from the Mortgage Bankers Association. The shift is a stark reversal from the steady decline in short-term delinquencies during 2009.

Remember this graph on the dreaded double-humped camel.

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