The Mortgage Bankers Association recently reported that delinquency rates for mortgage loans on one to four-unit residential properties fell to their lowest level since 2006, while foreclosure rates fell to their lowest level in 16 years. The data was part of the their 2nd quarter National Delinquency Survey which showed that the delinquency rate fell 11 basis points to 4.66% of all loans outstanding. The percentage of loans with started foreclosure actions fell to 0.32% – the lowest since 2000.
“The mortgage delinquency rate tracks closely with the nation’s improving unemployment rate. In the second quarter, the mortgage delinquency rate was 4.66 percent, while the unemployment rate was 4.87 percent. By comparison, at its peak in the first quarter of 2010, the delinquency rate was 10.06 percent and the unemployment rate stood at 9.83 percent.” Said Marina Walsh, MBA Vice President of Industry Analysis.