U.S. mortgage delinquencies rose in the second quarter as the nation's unemployment rate reached a nine-year high, indicating that the number of loans entering foreclosure is gaining in the current quarter, according to a report by the Mortgage Bankers Assn. of America.
The percentage of homeowners who paid their mortgages a month or more late rose to 4.62% from 4.52% in the first three months of the year. The biggest increase was among homeowners with loans 90 days overdue, the association reported.
Delinquencies reached a high of 4.83% in the third quarter of 2001, after the economy slipped into recession. The peak was 5.12% in the first quarter of 1991.
Unemployment nationwide rose to 6.2% in the last quarter, the highest rate since the second quarter of 1994, according to seasonally adjusted Labor Department figures.