The Mortgage Bankers Association released data today indicating that over 12% of homeowners are experiencing mortgage delinquency. That statistic translates to 1 in every 8 homeowners are one payment (or more payments) behind on their mortgage loan. Since the incoming executive administration, the government and banks have made efforts to stave off foreclosures, but the rate of foreclosed homes has also modestly risen. The foreclosure rate is lower than expected because many mortgage lenders participated in a moratorium on foreclosure activity during the winter holidays and elections leading up to the inauguration. Fewer than 4% of homeowners are beyond the delinquency stage and facing actual foreclosure. Surprisingly, the majority of mortgage delinquency and foreclosures are among prime borrowers with fixed interest rate mortgages instead of the sub-primes borrowing that ignited the housing market decline over two years ago. Prime borrowers are held as the least risky to whom to lend and as a result experience lower mortgage interest rates and more lenient mortgage terms. Borrowers are considered prime because of credit profiles/scores, employment and income security as well as evidence of cash reserves, increased disposable income and equity in their home. Due to the bank’s best customers’ mortgage delinquency, interest rates have increased over the last month and experts expect to continue to see an increase of the 35 year high statistics as the summer approaches and unemployment increases.