USA Today: Record foreclosures won't ease soon (at risk of sinking into foreclosure — reached 6.35%)

[Omaha Steve]

http://www.usatoday.com/money/economy/housing/2008-06-05-foreclosures_N.htm

By Stephanie Armour, USA TODAY
With homes entering foreclosure at a record rate, economists see no letup in the surge of homeowners who are losing their properties for failure to pay their mortgage.

For the first quarter of the year, the rate of new foreclosures hit 0.99%, the highest point since record-keeping began in 1979, the Mortgage Bankers Association said Thursday. And the delinquency rate — reflecting those at least 30 days behind on their bills and at risk of sinking into foreclosure — reached 6.35%. That was another record.

"It doesn't get any worse than this," says Mark Zandi, chief economist of Moody's Economy.com. "There's no sign of stabilization. It's going to continue at least through the end of this year."

Patrick Newport, an economist at Global Insight, says: "I look at a lot of housing reports, and this is probably the worst report I've come across. We still think home prices will drop another 10%, and foreclosures will remain elevated through the end of the year."

At the same time, Newport says, there's some sign that home sales may be picking up in California and Florida. If so, he says, that could lead to an uptick in sales nationwide by the end of this year. But he and other economists agree that the high rate of foreclosures will persist nationwide.

FULL story at link.