Loans in process of foreclosure are on the wane, a good sign. But home loans where owners have missed a payment are on the rise.
Mortgage loan rate will rise from an average 4.4 percent now to 5.1 percent in 2011, mortgage bankers forecast.
Foreclosures may come down as the jobs market improves, but the share of home loans in serious trouble remains elevated.
The $1.5 billion federal aid package will be distributed to housing agencies in California, Nevada, Florida, Michigan, and Arizona – the states hardest hit by the housing crisis – to help keep struggling homeowners in their houses.
A decline in mortgage delinquencies is promising, says the Mortgage Bankers Association. But real estate troubles continue.
Job losses are driving more mortgage woes, as a record 9.6 percent of homeowners were delinquent in the third quarter, Mortgage Bankers Association reports.