Investors appeared to take a report on flat U.S. home prices in stride Tuesday, but still-rising mortgage delinquencies signal more foreclosures, damping hopes that the housing market is recovering.

“Delinquencies are a precursor to foreclosures,” said Cameron Findlay, chief economist at LendingTree.com, in an interview Tuesday. “We’re not seeing any decreases in delinquencies, which is very concerning.”

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