The Mortgage Bankers Association has reported that homeowners starting the foreclosure process in the April to June quarter reached 0.65%, an all-time high.
This was the third consecutive quarter where foreclosures increased, each quarter marking a new all-time high.
MBA’s chief economist Doug Duncan said the numbers were driven by heavy job losses in the Midwest and the housing collapse in once hot markets in areas such as Arizona, Nevada, Florida, and California.
The association also reported a large increase in delinquency rates, which track the number of people behind on mortgage payments, but not necessarily facing foreclosure.
The delinquency rate for all loans rose to 5.12%, up roughly three-quarters of a percent from a year ago levels.
Ohio was hit especially hard, with a large number of defaults reported and foreclosure numbers high above the rest of the nation.
“The percent of mortgages in Ohio that are 90 days or more past due or in foreclosure is still more than twice the national average and 1 percent of all the mortgages in Michigan had foreclosure actions started on them during the last quarter,” Duncan said.
The delinquency rate for subprime mortgages also increased from 13.77% in the first quarter to 14.82%.
Prime loans delinquencies also saw a rise from 2.58% in the first quarter to 2.73%.