Mortgage Market Troubles Grew in the Third Quarter

The troubles in the US housing market are far from over. Data released by the Office of Thrift Supervision and the Office of the Comptroller of the Currency found that the percentage of current and performing mortgages dropped in the 3rd quarter. It was the sixth consecutive quarter during which a drop was seen.

According to the report, over one million homeowners have a foreclosure in progress. And the problems in the mortgage market continue to be varied. 27.9% of Adjustable Rate Mortgages (ARMs) are either seriously delinquent or in foreclosure. "Prime borrowers," those with good credit scores considered the most desirable borrowers for mortgages, have seen the percentage of their ranks at risk of losing their homes double over the past year. 3.6% of prime borrowers are more than 60 days late on their mortgages--more than double that of last year.

Even with a growing number of borrowers choosing to walk away from their mortgages on underwater properties, these numbers are still troubling for both the industry and the government. While many argue that the economy is improving, an increase in the number of borrowers who cannot afford to make payments on their homes is not a good sign. It means that many remain out of work, property values are still low, and the market is depressed.