The Arizona Republic today had a front page article that said Arizona ranks number 2 in the nation for percentage of subprime mortgages, second only to Nevada. But the delinquency rate on those loans in Arizona is 9.26 percent, which is less than the national average of 13.3 percent.
What does this mean? I think it means the worst is still yet to come for the Arizona housing market. I expect foreclosures to continue to increase, especially since the recently announced inflation rate was higher than expect, meaning the Federal Reserve likely won't lower rates for some time and may still raise them.
Of course, one person's bad news is another person's good news. If you are looking to pick up houses for cheap through foreclosure and preforeclosure sales, start amassing your funds now to go on a buying spree.