That number is up from roughly 200,000 per quarter during the first half of 2007. Delinquencies and foreclosures are therefore likely to continue to rise for a number of quarters. Many of the borrowers facing resets will still have solid payment records and enough home equity to refinance.
But others will face challenges from not only low levels of home equity but also from considerably tighter credit conditions. The Federal Reserve’s recent surveys of senior loan officers at banks have showed a significant tightening of standards on subprime loans.