LPS Applied Analytics released their mortgage data today for the month of September.
The average number of days delinquent before a home enters foreclosure is 484. That is 484 days of rent free living. (A recent research piece estimated this as a $2.6 billion monthly boost to consumer spending.)
The following chart shows the percentage of mortgages non-current and delinquent. The bottom line shows the percentage of mortgages in foreclosure. As we move forward the percentage of homes in foreclosure will rise upward to meet the top two lines. This will be when the real flood of inventory hits the market.
The Wall Street Journal reported this morning that the number of months to clear the banks housing backlog is now at 107. That is 9 years of housing backlog if no additional homes were to become delinquent moving forward.
We also found out today that the home ownership rate, once the darling political statistic, has now reached 1999 levels at 66.9%. Many forecasts showing this number reaching 60% over the next few years. That would be a dramatic plunge downward in the chart below: