Home Foreclosures
The real estate and financing industries in the U.S. are experiencing seasonal highs at the end of the second quarter. The figures for the delinquency and home foreclosure rates for mortgage loans have sunk several points, compared to this year’s first quarter.
The Mortgage Bankers Association (MBA), in their national delinquency survey, validates a 21-basis-points dip by the second quarter this year for the delinquency rate of 9.85 percent on mortgage loans of residential properties. Included in the survey are loans that are at least a payment date-late.
On the other hand, there is a slight decrease in the number of loans that are processed for foreclosure. At the rate of 4.57 percent, this foreclosure rate is only six-basis-points lower from the previous quarter.
The rate for serious delinquency, or the chunk of loans that are at least three months past due or facing foreclosure, has likewise joined the seasonal drop. By the second quarter, at 9.11 percent, this is a comparatively substantial decrease of 43 basis points.
Still, it’s not all good news. Unemployment still caused a major dent on most mortgage loans. MBA’s chief economist, Jay Brinkmann, presents the other side of the coin.
Brinkman shares how the current trend may turn the other way around, “The disappointing news is that, after declining since the beginning of 2009, the rate of short-term delinquencies is going up and the increase in these short-term delinquencies may ultimately drive the foreclosure measures back up.”
