Defaults on privately insured U.S. mortgages rose 35 percent in November from the same month last year, an industry report today showed, adding to evidence the U.S. housing slump is deepening.

The number of insured borrowers falling more than 60 days late on payments jumped to 61,033 last month from 45,325, according to data from members of the Washington-based Mortgage Insurance Companies of America. The missed payments, often a prelude to foreclosure, represented a 2.9 percent increase from October and marked the first time defaults topped 60,000 since at least 2001.

Home prices fell 6.1 percent in 20 U.S. metropolitan areas in October, according to S&P/Case-Shiller. Mortgage insurance repays lenders when borrowers don’t, and falling home prices make it harder for borrowers to refinance and for banks to recover their loans in a foreclosure. [MORE]