In a further sign of home market value declines and defaults, US prime jumbo mortgage defaults reached 9.6% up from 9.2% in December of 2009.
This represents the 32nd straight increase for delinquencies in jumbo mortgages.
Jumbo loans currently range from $417,00.00 to $729,750.00 in high cost areas. The reasons behind this increase in defaults can be attributed to the same reasons for defaults in virtually all housing segments which include:
- Decline in values
- Lack of qualified buyers and demand
- High unemployment
- Strategic defaults or simply put, homeowners who just decide to stop paying.
In my opinion, the housing crisis will continue to be the overarching dilemma that will have to be dealt with effectively, before our economy will return to any sustainable rebound.