OBAMA What Economic Rebound? Foreclosures, Job Losses And Higher Taxes

The Obama Administration CNN, MSNBC, NBC and CBS are trying to tell the American people that the economy in making a turnaround but, delinquency and foreclosure rates for U.S mortgages continue to rise in the second quarter, with loans to most qualified borrowers going bust at a unnerving clip, especially in hard hit states in California and Florida. The numbers reported Thursday by the Mortgage Bankers Association show clearly that the rising job losses are worsening the nation's housing troubles and threaten the Obama Administration effort's to keep owners from losing there home. The quarterly National Delinquency Survey showed that almost 1 in 10 homeowners with a mortgage was at least one payment late, and thus delinquent, while another 4 percent had entered the foreclosure process on there loan. Nowhere, is there less sunshine in the picture than Florida. The survey found out from April to June 12 percent of all Florida Mortgages were in foreclosure and about 23 percent of all Florida mortgages almost 25 percent were late on payments or under threat of foreclosure. In California, 11 percent of all mortgages were 90 days, or more past due or in foreclosure. While the Golden state accounts for 13 percent of U.S. mortgages. It is also the site of almost 20 percent of foreclosure starts from April to June. More worrisome is a trend emerging deeper in the numbers, sub-prime loans given to the weakest borrowers are now a declining portion of delinquency and foreclosure rates, while prime loans, given to highly qualified borrowers, are a rising share. The rise in prime delinquencies is a clear indication that unemployment is the driver of mortgage performance, with the worst performance coming in those areas that are combining job losses with large drops in home values in California and Florida. Finally, there will not be a turnaround in in delinquencies until we see improvements in employment. there was bad news for the Obama Administration on the employment front Thursday the Labor Department reporting for the second consecutive week and unexpected rise in initial job claims. The 576,000 claims last week, following 561,000 the week before, likely sets up a bad jobs report for August from a so-called July reprieve. The unemployment rate stood at 9.4 percent in July but is expected to peak at 10 percent. That means more foreclosures, which will put a drag on the economy.