Mortgage Delinquencies Drag on Economy

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A record number of homeowners have been falling behind on their mortgage payments, the Mortgage Bankers Association announced this week.

Over 10 percent missed at least one mortgage payment between January and March. Over four million homeowners could still be at risk of losing their homes, the association reported.

The continuing mortgage crisis has put a drag on the economy and has prevented a full recovery.

"We are in extraordinary times. How much of the change is being driven by seasonal factors or the fundamental changes in the trend is unclear," said Jay Brinkmann, the group's chief economist.

"If mortgage delinquencies are not yet clearly improving, it also appears they are not getting worse. However, a bad situation that is not getting worse is still bad," he said.

Economists predict home prices will go down as many of these properties go into foreclosure. Many experts believe prices will bottom out in the spring of 2011.

*Originally broadcast on May 20, 2010.

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