A recent article in Bloomberg reported that the number of foreclosures on prime fixed-rate mortgages in the third quarter of 2010 hit a record high, with unemployment as the reason for the increase.

The inventory of homes in foreclosure that were financed by prime fixed-rate mortgages rose to 2.45% from 2.36% over the previous three months, according to the Mortgage Bankers Association. New foreclosures increased from 0.71% to 0.93% in the same time period. Both numbers were the highest since the MBA started tracking this data 12 years ago.

MBA’s vice president of research and economics, Michael Fratantoni, tells Bloomberg that job losses are making it difficult for homeowners who are deemed creditworthy to make their payments. The Bureau of Labor Statistics reported that the national unemployment rate has stayed above 9% for 18 consecutive months – the longest streak since 1983. The MBA also reported that foreclosures against all types of mortgages, including subprime mortgages, rose to 1.34% during Q3 2010, the highest level in a year.

In addition, the share of mortgages with overdue payments dropped from 9.85% in Q2 2010 to 9.13% during the third quarter. The decline was led by mortgages 90 days or more overdue, which are most likely to go into foreclosure. The share of mortgages 90 days or more overdue fell from 4.84% in the second quarter of this year to 4.34% in Q3 2010. The decline could be attributed to the increase in modified loans as homeowners seek to lower their payments in order to keep their house, Fratantoni said.