New delinquent home loans surged again during the last two quarters as the Mortgage Bankers Association warned on Thursday that the rising figures could effectively dampen recent gains on foreclosures which it said were slowly inching on the decline path despite maintaining their high incidence.

As soon as the data was made public, the Dow Jones index were pushed down by 74 points and eventually folded up this week’s trading below the 10,000 level after seven weeks of breaking beyond that edgy barrier.

Property analysts immediately sounded their alarms on possible upward reversal of foreclosures as the country’s job rate again approached the sliding path while new home sales failed to register impressive figures despite the availability of more affordable mortgages rates.

Also, Freddie Mac has reported on the same day that the average rate available on a 30-year fixed-rate loan retreated by 4.39 percent as economists explained that the rise in mortgages’ delinquencies were largely caused by skyrocketing unemployment rates that continue to plague the economy.

Jay Brinkmann of Mortgage Bankers said that the missed payments were understandable as he stressed that “it takes a paycheck to make a mortgage payment,” as he warned that further foreclosures should be expected in the absence of any improvement in the country’s employment rate.

And no rosy picture is coming up any sooner as according to Christopher Low of Chicago-based FTN Financial, no upward movements were seen on US job rates since April, spawning further introductions of a new wave of foreclosures to grip the market.

Also, Brinkmann put the blame on the now-withdrawn tax credit for home buyers that provided some breathing room along with loan modifications and improved loan delinquencies, which all evaporated for now.

Mortgage Bankers said that newly delinquent mortgages dipped for three consecutive quarters following peaks of up to 3.7 percent seen earlier in the year.

The downward trend was sustained this year and settled at 3.51 percent by the end of June as economist again trained their watchful eyes on loans in dangers of going through foreclosures, noting that their numbers had bloated due to moratoriums on foreclosures and trial loan modifications.

Brinkmann revealed that as of June, these loans have piled up by as much as 4.5 million in numbers as he admitted that such loans had hardly provided the necessary long-lasting relief required by loan seekers.

Many economists expressed fear that these loan would also result to housing supply surplus that would inevitably pull down home prices, which already gained considerable steams in many areas.

On the other hand, foreclosure proceedings fell by 1.23 percent in the first quarter of the year, which industry experts said was prompted by banks’ deliberate attempts to thwart the introduction of oversupply in the market that could badly hurt home prices.

Moreover, the retreating foreclosure proceedings could also be brought about by the wait-and-see attitude being observed for the time being by some mortgage servicers, according to Douglas Robinson of NeighborWorks America.

Robinson said that the industry is keenly monitoring the actual impact of the Obama administration’s emergency economic aid to states as he maintained that the foreclosure declines would not lead to any key changes in the economy, stressing that “pay option mortgages and the high unemployment would lead to the next wave of foreclosure late this year.”