According to Freddie Mac, the rates for delinquent apartment buildings has risen, while the rates of past due loans on single family homes has somehow managed to fall slightly. Having late home loans of 90 days or greater improve over June and July is a great thing for the economy, but is it enough to really help turn things around?

Housing Delinquencies Down, Apartments Up

Even though the single family homes rates of delinquency is starting to finally work itself out of a very deep hole, the vast majority of apartment dwellers might be shocked to hear that the 60 past due rate has gone up from 0.28 percent to 0.30 percent. While that may not seem like a big hike to most people, the average in July last year was around 0.12 percent. Looking at those numbers from a year ago versus today, that is quite a jump for delinquent loans on apartments.

The big issue is; what is going to happen to those people when the apartment buildings get foreclosed? Most of them won’t be able to get into a single family home, not without taking on more debt, creating another housing bubble and crashing the system all over again in a vicious circle.