Many of you have probably seen the lead story in the Arkansas Democrat Gazette this past week concerning mortgage loan foreclosures nationwide. While this has obviously become a significant problem in the sub-prime markets I would like to touch on a few points as it relates to the mortgage industry here in Arkansas . According to the Arkansas Realtor Association Housing Market Report sales of new and existing homes have decreased by 7.50% YTD through the end of July. While this is a decrease, I don't think it is as significant as what the public is being led to believe. Statewide delinquencies in the prime lending market in Arkansas are at 2.81% compared to 2.73% nationally. Delinquency rates among sub-prime borrowers in Arkansas are at 15.56% compared to 14.82% nationally. While delinquency rates among sub-prime borrowers are significant it is important to realize that this sector of the market makes up just 7.3% of all mortgages nationwide.
Posted with Permission of Mike Milner MBAA, Vice President