Thursday, March 29, 2007

Where Subprime Delinquencies Are Getting Worse

Hat tip to Housing Doom (and Doomer G) for this great piece.

From WSJ Online come a piece that looks like the CDC's latest outbreak of some contagious diease:

SUBPRIME MORTGAGES have been cropping up in surprising spots. Typically, these loans to home buyers with the weakest credit were concentrated in lower-income or economically depressed areas. But over the past few years, a large chunk of the subprime-loan market has shifted to higher-income metropolitan areas. In many of those wealthier areas, the delinquency rate has increased quickly. In the Sacramento, Calif., region, where the median household income ranks among the top 10th of major metropolitan areas, the portion of subprime mortgages delinquent for 60 days or more hit 14.1% in December -- more than four times the level a year earlier. Other parts of California, as well as sections of Florida and Massachusetts -- especially those areas where housing prices have surged -- also logged rapid increases in delinquencies.

— Compiled by Pat Minczeski and Brett Taylor

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