MARKETING PIECES 2

Easy money has dried up in most home markets

Rising interest rates, of course, don't hurt homeowners with fixed-rate loans, or the 34% of homeowners whose properties are paid off. In fact, in the second quarter, the delinquency rate for all loans combined was just 4.4%, down slightly from the first three months of the year, though up a little from the second quarter of 2005, the MBA says. And the figures are still low compared with four years ago, when the nation was emerging from a recession.

ARM defaults, especially among those with subprime credit, are likely to raise the national figures in coming months. In 18 states, more than 15% of homeowners with subprime ARMs were behind in their payments in the second quarter.