Mortgage delinquency rate at 29 year high

According to National Delinquency Survey by MBA, mortgage delinquency has jumped fifty three basis points in the 1st quarter of this year to 6.35% of all the outstanding mortgage loans from what it was in the previous quarter. More importantly, from 1 year ago, it has increased by 151 basis points.

The report has been developed on the basis of a sample of more than forty four million mortgage loans serviced by commercial banks, credit unions, mortgage companies, thrifts & others.

It has now become the highest delinquency rate ever recorded for the index with the previous high being 6.07%, recorded in 1985.

Jay Brinkmann, who is Vice President, Research & Economics at MBA said that magnitude of this nationwide increase in delinquency rate is driven by certain states & certain mortgage loan types. Brinkmann also added that increase in foreclosure rate has been led by those states which have seen largest decline in prices in the last 2 years.

As per the report total rate of delinquencies rose -

1.For prime rates to 3.71% which was 3.24% in last quarter and
2.For subprime rates to 18.79% which was 17.31% in last quarter.

Also, the total foreclosure rate increased to 2.47%, which was 2.04% in the last quarter.