Increase in home Delinquencies

The following statistics are from MBA survey of home delinquencies released today. The survey shows increased rise in delinquencies across the board.

• Total, 1-4 units delinquencies increased to 5.59% from 5.12% in Q2.
• Prime increased to 3.12% from 2.73% in Q2.
• Subprime increased to 16.31% from 14.82% in Q2.

The new government plan to freeze interest rates is coming out tomorrow. A lot of people are pinning a lot of hope on the plan to save the day and improve conditions in the economy and the housing market.

I have my doubts about the plan being able to accomplish what it intended to do. Since delinquencies are increasing across the board and not limited to subprime, which will have the lions share, if not all, of mortgage resets and ARMs, the problem is income reduction and employment. House owners have a decreasing income due to employment or reduced earnings and can't meet their financial obligations. Another evidence is the increase of credit card delinquencies and car loan delinquencies. A freeze on interest rate will help a bit, but it will not prevent the issue