American housing crisis hits new records! by Silvia Szarkova

Slumping economy´s new consequences are here: it is not just the interest rate that was pushed down, the prices of houses are declining more and more- that makes foreclosures jump to new records and logically, people find themselves paying more for mortgages and loans than their houses are really worth for. Quarterly snapshot of mortgage market released by Mortgage Bankers Association on Thursday proofs that almost 448,000 homeowners in United States fell into foreclosure troubles during first three months of 2008. It makes nearly one percent of all loans, what is a new record leaving behind the 2007 December record of 0.83 percent of loans. Report reveals also the next agitating fact- the issue of delinquency of monthly payments- the rate soared to 6.35 percent, what represents 2.87 million loans, in comparison to 5.82 percent for the previous period. It means that homeowners are not able to pay the rent 30 and more days after the limit. Going back, lasts records reaching these scary numbers and values occurred in 1979 and according to the vice president of the association Jay Brinkmann, foreclosures and payments are facing the up rising tendency in next months. The biggest hit is for homeowners who have subprime adjustable- rate loans, these values are jumping to never reached numbers- from the last high of 5.29 percent it soared up to 6.35 percent. Numbers were high also for more creditworthy borrowers and those who have adjustable rate motgages. Brickmann says the biggest problem is in low price of houses- this could cause inconvenience especially for those recovering after divorce or loss of job. There are areas that are more likely to be in bigger disadvantages- Florida, Arizona, Nevada and California have to bear the 89 per cent of total amount of new home foreclosures. Brickmann says these are the places where prices have fallen sharply and now there is a big deal with the too much supply. Housing market has been facing with slump for two years after a five-year period of boom. According to a researchers what is wrong can become even worse- but the truth is that three out of ten people are worried about the value of their living in next two years.

related story: http://news.yahoo.com/s/ap/20080605/ap_on_bi_ge/home_foreclosures;_ylt=AkbpsF97z56KXX6s_CWS3Y2s0NUE

by Silvia Szarkova for PocketNews (http://pocketnews.tv)

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