|The share of Americans paying their home mortgages late increased at a faster pace during the second quarter. FHA loans led the jump in delinquency.
The Mortgage Bankers Association of America (MBA) reported that the percentage of borrowers past due thirty days or more on 1-4 unit residential properties was 4.77%, up 0.12% — or 12 basis points (BPS) — from the first quarter. The jump compares to a 0.02% increase from the end of last year to the first quarter.
A year ago, MBA said 30+ day delinquency was 4.63%.
The data, released this week in MBA’s second quarter National Delinquency Survey, indicate that broken down by degree of delinquency, 3.2% of mortgage borrowers were 30-days past due, while 0.79% were sixty days past due and 0.78% were 90 days past due. The biggest jump was in the 90-day category, which increased seven BPS from last quarter.
source: Mortgage Bankers Association
By region, the Northeast saw the biggest increase in delinquency, rising 20 BPS to 4.64%. The delinquency rate fell six BPS to 5.73% in the South — the only region to improve. At the same time, some states in or near the South saw the highest delinquency levels in the country. Mississippi’s delinquency rate was 7.89%, while Louisiana was 7.04% and Tennessee was 6.45%. Texas and Georgia had respective delinquency rates of 6.21% and 5.99%.
MBA said mortgage loan delinquencies tend to lag changes in economic activity, and that the current economic slowdown began in 2000.
MBA’s Duncan said the trade organization currently expects delinquencies to remain near their current level for the next few quarters.
Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com. He also owns and operates CloseNow.com, a real estate portal site.