Serious delinquencies of jumbo loans ($417,000 in most areas and $729,750 in certain high-priced markets) were higher for the 32nd month as of January according to Fitch Ratings, a credit rating organization.  These 60 day+ late loans jumped to 9.6% of the residential mortgage-backed securities market compared to 9.2% in December.  This trend has been in place since 2007 and nearly tripled in 2009.

In California, which holds 44% of the jumbo loans, the delinquency rate was 11.3% in January and expected to climb.  Jumbo prime loan delinquency rates also rose in Florida, New Jersey, New York and Virginia.  Fitch officials indicated that in mortgages written in 2005 through 2007 50% of the jumbo loans are under water.

The luxury home market is another prime area for short sales, particularly in California, Florida, New York, New Jersey, Connecticut, Nevada and states in the Washington, DC beltway area.