The outlook for surging mortgage delinquencies worsens in a market that has taken several crushing blows. As the housing markets have deteriorated over the summer and a liquidity squeeze challenged credit markets, delinquencies and defaults have jumped. A forecast predicts that these numbers will climb even higher over the next six months. In addition about $50 billion in adjustable-rate mortgages are scheduled to reset this month, which will drive up interest rates for many credit-challenged borrowers. And despite efforts to increase awareness, it sure doesn’t appear like anyone is really prepared for what’s to come.
The Delinquency Risk Is Rising