San Diego Home loan failures rise for 37th straight month – set another record

San Diego Union Tribune reports:

After doubling between 2000 and 2005, county home prices began a gradual decline in the fall of 2005. There is still a glut of risky adjustable-rate loans that were issued in 2005 and will begin resetting at higher interest rates over the summer, said Stephen Levy, director and senior economist at the Center for Continuing Study of the California Economy in Palo Alto.

“We haven't hit the peak,” Levy said.