With mortgage rates on the rise and home prices leveling out, foreclosures are becoming more common, especially in the American Midwest.

The rate of foreclosures is closely watched by real estate analysts and investors because it can be an indication of market distress.

In the last five years, home prices have risen by almost 50%. Both interest rates and foreclosures have been historically low. Any homeowners having trouble paying their mortgage were able to easily sell their homes, eliminating the need to default.

A recent survey by RealtyTrac shows that there is a increase of foreclosure rates and delinquent mortgage payments across the country. Even though the rates are high compared with the last few years, they remain low when compared to the last few decades.

The number of mortgage loans in foreclosure rose to 117,259 in February, an increase of 68% from February 2005.

Delinquent accounts are up by 2.84%. LoanPerformance, a subsidiary of First American Real Estate Solutions, reports that 3% of the most risky loans were 90 days delinquent in February. Ninety-day delinquencies were up 0.76% for borrowers with good credit.

Doug Duncan, chief economist of the Mortgage Bankers Association, says that the rise in delinquencies isn't surprising. The MBA reports that there was an increase of .26% in delinquencies and a 0.01% increase in the foreclosure rate in the last quarter.

Three states in the Midwest are proving to have the highest rates of loan foreclosures and delinquencies: Indiana, Ohio and Michigan.

The cause of mortgage problems can be found in many places. One factor is family economic distress, such as job loss or severe illness. The slowing pace of home appreciation also factors in. The states leading the foreclosure list have had relatively low home price appreciation when compared to the rest of the country. They also have a below-trend job growth rate.

The national level of foreclosures for the end of the fourth quarter of 2005 was 0.99%. Ohio had 3.22% of loans in foreclosure, Indiana had 2.75% and Michigan had 1.75%. The East North Central region had a 2.05% foreclosure rate for mortgages, the highest regional level in the nation, according to the MBA.

Martin Lukac(http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!