Record foreclosures for prime borrowers

Unemployment weighs heavily on survey data

The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills

The foreclosure starts rate for borrowers with prime, fixed-rate mortgages set a new record high during the third quarter, the Mortgage Bankers Association said in releasing the results of its quarterly National Delinquency Survey.

As the pool of subprime and prime adjustable-rate mortgage (ARM) loans continues to shrink, unemployment is the greatest threat to homeownership for the 78 percent of borrowers whose homes were purchased with prime, fixed-rate mortgages or FHA-guaranteed loans.