The latest evidence was a report Thursday that a rising proportion of
fixed-rate home loans made to people with good credit are sinking into
foreclosure. That's a shift from last year, when riskier subprime loans drove
the housing crisis.
The report from the Mortgage Bankers Association also found that 14 percent
of homeowners with a mortgage were either behind on payments or in foreclosure
at the end of September. It was a record-high figure for the ninth straight
The data suggest the housing market and the broader recovery will
remain under pressure from the surge in home-loan
defaults, especially as unemployment keeps rising. Lost jobs are the main reason
homeowners are falling behind on their mortgages.
The effects of this will be long reaching. I know, "No, shit, Sherlock."