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Mortgage Delinquencies Still on Rise. Prime Defaults a Growing Concern
A harsh labor market continues to propel mortgage delinquencies at near record rates, an industry survey said Thursday. Though the level of delinquencies moderated somewhat in the second quarter, continued troubles in the labor market suggest delinquencies and foreclosures will remain a throbbing headache for the real industry heading into 2010.rnrnIn the first quarter of this year, a record high 1.37% of all mortgage loans went into delinquency, and in the second quarter that figure only moderated one-tenth to 1.36%, said the Mortgage Bankers Association, who conduct a survey of 44 million loans across the country.
Conflicting Signs: Leading Indicators and Philly Fed Survey Suggest Q3 Growth
Two reports half an hour into the trading session indicated that the economy is turning for the better. The Leading Indicators Index (LEI) moved up for its fourth straight month in July, and the regional manufacturing report from the Philadelphia Federal Reserve rose to its highest level since November 2007.rnrnThe LEI is a composite index that uses a broad gauge of economic data to track turning points in the economy. The 0.6% advance in July puts the six-month index at an annualized pace of +6.2%, marking a substantial improvement from the -5.4% annualized decline seen in the second half of
Jump in Jobless Claims Suggests Labor Market Worse than July
Markets were hoping that new claims for unemployment insurance would hold steady or even see modest improvement to the 550k level, but firings just aren’t letting up as summer comes to a close. rnrnFirst-time claims for jobless benefits increased for the second straight week, moving up by 15k last week to 576,000, and the prior week’s figures were revised up by a few thousand to 561,000. Any number higher than 360k indicates the labor market is bleeding, so the figures suggest that companies continue slash payrolls rapidly to cut costs.
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