Delinquencies jump even more for prime jumbo loans

The next wave of mortgage defaults More borrowers with good credit are defaulting on their home loans, and that's going to make it even harder for the staggering housing market to recover. NEW YORK (CNNMoney.com ) -- Prime mortgages are starting to default at disturbingly high rates - a development that threatens to slow any potential housing recovery. The delinquency rate for prime mortgages... [more]

The next wave of mortgage defaults More borrowers with good credit are defaulting on their home loans, and that's going to make it even harder for the staggering housing market to recover. NEW YORK (CNNMoney.com ) -- Prime mortgages are starting to default at disturbingly high rates - a development that threatens to slow any potential housing recovery. The delinquency rate for prime mortgages worth less than $417,000 was 2.44% in May, compared with 1.38% a year earlier, according to LoanPerformance, a unit of First American (FAF, Fortune 500) CoreLogic that compiles and analyzes residential mortgage statistics. Delinquencies jumped even more for prime loans of more than $417,000, so-called jumbo loans. They rose to 4.03% of outstanding loans in May, compared with 1.11% a year earlier. http://money.cnn.com/2008/08/12/real_estate/prime_defaults_price_drops/index.htm?postversion=2008081208 Fortunately, NO effect on Manhattan. [less]