It seems there can be no complete recovery of the housing market until the job market stabilizes. New data from Equifax, reported by Reuters news today showed that the rate of mortgage delinquencies is climbing, and climbing fast.
According to the source, 7.58 percent of all U.S. mortgages were delinquent by 30 days or more in August, an increase from July’s 7.32 percent. This is the fourth straight month of rising delinquencies, and the current rate is up dramatically from a year earlier when it was 4.89 percent. And two years ago, in August 2007, the rate was only 3.44 percent.
Here’s a graph from the Mortgages Unzipped blog that shows the delinquency trend over the past few years. It is definitely on the quick uprise.
Apparently there is a very high correlation between these recent figures and the rate of consumer bankruptcy filings. Bankruptcy filings rose by 32 percent in the past year according to Reuters.