Offering a glimmer of hope in the mortgage crisis, recent loans show an increase in on-time payments. But the good news does not extend to loans made earlier. And for all home loans nationwide, defaults continue to rise, making likely a continued surge in foreclosures and decline in home sale prices, the Wall Street Journal reports.
Analysts believe the change reflects a tightening of lending policies in the wake of the home mortgage market crisis. The current rate of overdue payments on subprime loans less than four months old is 6.6%, down from last year's 7.6% peak. "It's still really high, but at least it's dropping," one analyst said.