Some interesting info on the foreclosures and loan types.

[Blue Diadem]

snip:

Only eight states had rates of foreclosure starts that were above the national average: Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana, and Ohio. The remaining 42 states plus the District of Columbia were below the national average.

“The other factor that continues to drive foreclosure rates is loan type,” continued Brinkmann. “Subprime ARM loans accounted for 36 percent of all foreclosures started and prime ARMs, which include option ARMs, represented 23 percent. However, the increase in prime ARMs foreclosure starts was greater than the combined increase in fixed-rate and ARM subprime loans. Thus the foreclosure start numbers will likely be increasingly dominated increasingly by prime ARM loans.

California and Florida accounted for 58 percent of all prime ARM foreclosure starts in the second quarter and 78 percent of the increase in prime ARM foreclosure starts. The foreclosure starts rates on prime ARMs were 2.47 percent for California and 3.20 percent for Florida, versus the national median of 1.06 percent. The foreclosure starts rate for subprime ARM loans in California was 9.5 percent and in Florida 9.1 percent, about double the national median rate for subprime ARMs.

“Perhaps the question most asked these days is whether we are close to a bottom, in other words, when will delinquency and foreclosure rates begin to head down. The simple answer is that the idea of a national bottom is somewhat meaningless. Real estate markets are local and some markets are already improving. For example, even Michigan, one of the worst hit markets in the country, has now gone three quarters with little to no increase in its rate of foreclosures. Likewise, Massachusetts showed a very large drop in foreclosure starts, perhaps signaling a bottom. Because of the sheer size of California and Florida, an improvement in the national numbers, whether delinquencies, home prices or any other measure, is unlikely until we see some turnaround in those two states,” Brinkmann said.

http://www.mbaa.org/NewsandMedia/PressCenter/64769.htm

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and this from an earlier report from March 2008

snip:

Percent of Loans Percent of Foreclosures Started 4th qrtr 2007

Prime Fixed 65% 18%
Prime ARM 15% 20%
Subprime Fixed 6% 12%
Subprime ARM 7% 42%
FHA 7% 8%

California and Florida continue to represent a disproportionate share of the foreclosure starts in the country. Those two states represent 21 percent of all loans outstanding, but accounted for 30 percent of foreclosure starts in the US. More importantly, they accounted for 39 percent of all prime ARMs outstanding, but 47 percent of prime ARM foreclosure starts. Similarly, they represented 29 percent of all subprime ARMs, but 36 percent of subprime ARM foreclosure starts. The rate of foreclosure starts in Florida more than tripled between the fourth quarter of 2006 and the fourth quarter of 2007, while the rate in California more than doubled.

While Michigan, Ohio and Indiana continue to have the highest percentages of loans in foreclosure, and are among the states with the highest rates of new foreclosures, those states experienced comparatively little increase over the last year or last quarter in their rates of new foreclosures started.

"Declining home prices are clearly the driving factor behind foreclosures, but the reasons and magnitude of the declines differ from state to state," said Doug Duncan, MBA's Chief Economist and Senior Vice President of Research and Business Development. "In states like Ohio and Michigan, declines in the demand for homes due to job losses and out-migration have left those looking to sell the homes with fewer potential buyers, particularly with the much tighter credit restrictions borrowers now face. In states like California, Florida, Nevada and Arizona, overbuilding of new homes created a surplus that will take some time to work through.

http://www.mbaa.org/NewsandMedia/PressCenter/60619.htm

[chill_wind]

1. There is an interesting study here, too.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4168807

[Mojorabbit]

2. I read where millions of subprime./alt a

loans are due to reset in 09. With the continued loss of jobs I just do not see a bottom yet.

[Zenlitened]

3. National average... as measured currently? Or as measured hsitorically?

:shrug:

From the Mortgage Bankers Association press release you cited:

Once again this quarter, the rate of foreclosure starts and the percentage of loans in the process of foreclosure set new records.