While this year has been painful enough, 2009 is expected to be even worse for mortgage delinquencies, according to a recent report.
Adjustable-rate mortgages made during the housing boom are projected to trigger a surge in the number of consumers that fall behind on their home loans next year.
That’s according to a report in The Wall Street Journal about research conducted by TransUnion, a credit bureau.
From The Wall Street Journal:
TransUnion LLC, which analyzed about 27 million consumer records in its database, predicted that the proportion of consumers with mortgages that are 60 days or more past-due will hit 7.17% in the fourth quarter of 2009.
That would be the highest level reached since the Chicago credit bureau -- which is releasing the data on Tuesday -- first started tracking these statistics in 1992. It compares with an expected delinquency rate of 4.67% at the end of 2008.
Mortgage delinquencies aren’t expected to peak until the early part of 2010, The Wall Street Journal reported.