Foreclosure Delays Reach New Records and Low Mortgage Rates

Delinquent home owners are living in their homes longer, rent-free. Home owners with a loan in foreclosure haven’t made a payment, on average, for 20 months or 599 days--a new record, according to new data by Lender Processing Services Inc.

Of nearly 1.9 million loans that are 90 or more days delinquent--but not yet in foreclosure--42 percent of the home owners have not made a payment in more than a year, with an average delinquency of 397 days--another record, LPS reports.

The slowdown in foreclosures was most evident in judicial foreclosure states. At the current rate of foreclosure sales, judicial foreclosure states would require 111 months to work through inventories of loans that are 90 or more days delinquent or in foreclosure. On the other hand, non-judicial states would be able to clear inventories in about 32 months, according to LPS data.

Mortgage rates this week are averaging at or near historic lows, Freddie Mac reports in its weekly mortgage market survey.

"Weaker economic data reports eased upward pressure on mortgage rates this week and kept them at or near all-time record lows,” says Frank Nothaft, Freddie Mac’s chief economist.

Here’s a closer look at rates for the week:

30-year fixed-rate mortgages: averaged 4.22 percent this week, holding steady at last week’s average. Last year at this time, 30-year rates averaged 4.32 percent and people are doing loan modifications which means they are remodeling their home. Most of the people I speak with are having their kitchen re done. If you want Kitchen Remodeling by a name you can trust. Try out Sears Home Services because they offer professional kitchen cabinet and kitchen counter top installation. Another Company to consider is Lowes. Besides heping people with their kitchen they offer 20% off All Patio Blocks, Including Patio Stones, Retaining Walls, and EdgersThe reason I say that is because at the end of August the 30-year rates had reached a new record of 4.15 percent and that means it is a good time to take advantage of these great rates.

15-year fixed-rate mortgages: averaged 3.39 percent this week, dropping from last week’s 3.44 percent average. Last year at this time, 15-year rates averaged 3.83 percent.

5-year adjustable-rate mortgages: set an all-time record of 2.96 percent this week. This is the eighth consecutive week that the 5-year ARM has fallen and it is down from last week’s 3.07 percent average. A year ago, the 5-year ARM averaged 3.54 percent.

1-year ARMs: averaged 2.89 percent, dropping from last week’s 2.93 percent average. A year ago at this time, the 1-year ARM averaged 3.50 percent.