The number of US borrowers behind on their mortgage payments or facing foreclosure rose to record highs in the third quarter and threatened to escalate as job losses mount, the Mortgage Bankers’ Association said on Friday.

Almost 7 per cent of mortgage loans were in arrears in the third quarter, while a further 2.97 per cent were at some stage of the foreclosure process. The MBA estimates that about 2.2m homes will have entered foreclosure proceedings by the end of this year.