Friday, May 29, 2009

Oregon foreclosure rate highest since early 80's

From the Oregonian:

Oregon's foreclosure rate spiked in the first quarter of 2009 to a level seen only once before in the last 30 years, according to a report released today.

The Mortgage Bankers Association report shows 2.21 percent of Oregon's 636,000 outstanding mortgages were in some stage of foreclosure during the first three months of the year.

That's the highest since the rate hit 2.23 percent in early 1985 during a nasty Oregon recession.

This year, the figures are likely to get worse as home owners who've lost their jobs fall behind on their mortgages.

While Oregon's mortgage woes hit historic levels, the state continues to fare better than the country as a whole.

Nationally, the rate of foreclosures and late mortgage payments to hit record highs again as the trouble spreads from risky subprime loans to more traditional prime loans.

Sun Belt states that saw the most rampant speculation during the housing boom -- California, Florida, Arizona and Nevada -- continue to suffer the worst of the mortgage troubles.

The four states account for about 46 percent of the foreclosure starts nationally.

While Oregon is doing better than California it is worth pointing out that we are now experiencing foreclosures at the same rate that California did 18 months ago. I don't think Oregon's foreclosure rate will end up as bad as California's but given the fact that we trail the nation by about a year I think we are still in for more bad news.