Prime borrowers delinquency rate increasing
Unfortunately, the prime borrowers are now failing to pay their mortgage rates at an increasing rate; I am seeing this more and more as a San Jose Short Sale Agent. This trend becomes problematic as the prime market represents 80% of the mortgage market. The delinquency rate for prime borrowers is at 6.4%, compared to sub-prime borrowers whose delinquency rate is an astonishing 25,4%!
The unemployment issue which is devastating the economy is the culprit behind this problem and makes it difficult for this segment whose good credit scores would otherwise have given them access to either credit or equity in their homes to ride out their unemployment in the past. Such options are no longer available to them.
