America's Home Owners Hit The Skids
Overdue mortgage payments highest since 2003
The stock markets are down across the board today almost two percent as more bad news came out about the housing market.
Homeowners are getting squeezed as interest rates have risen the last two years and home prices have dropped dramatically. Just under 5 percent of all the loans held in the U.S. are going unpaid for more than 30 days, the highest rate since the second quarter of 2003. Equally alarming is the foreclosure rate of .54 percent, a clear indication that people are having troubles keeping up with their bills.
As if the sub-prime market wasn't already experiencing enough pain, today's numbers for sub-prime adjustable rate mortgages show a complete meltdown. The foreclosure rate is 2.70 percent with the delinquency rate 14.44 percent. These numbers are definitely going to get worse before they get better.
What does this mean for the economy as a whole? It probably won't mean much in the big picture but for those who haven't already realized it, the real estate boom is long gone and won't be coming back anytime soon.