MBA Reports Decline in Delinquency, Foreclosure Rates

The health of the housing market, as well as the economy as a whole, continues to be represented in the sharp decline of delinquency rates on mortgages and subsequent foreclosures. The Mortgage Bankers Association reported that one-to-four unit residential property foreclosures decreased to a seasonally adjusted rate of 6.41 percent of all outstanding loans at the end of Q3 this year.

This is the lowest point the delinquency rate has been at for this type of property since the second quarter of 2008. Meanwhile, the delinquency rate fell 55 basis points from the last quarter, and 99 basis points from the same quarter last year. The aforementioned data was culled by the MBA’s National Delinquency Survey.

“The degree to which the mortgage delinquency and foreclosure problem has changed over the last five years is perhaps best illustrated by the fact that last quarter New Jersey led the nation in the increase in the percentage of foreclosure actions filed, followed by Delaware, Maryland and Indiana,” said Jay Brinkmann, MBA’s chief economist and SVP of Research and Education.  “While Florida still leads the nation in the percentage of loans in foreclosure, that percentage is falling.  In contrast, New York and New Jersey were the only two states that saw an increase in the percentages of loans in foreclosure.”

Brinkmann added that states with judicial foreclosure systems represent a majority of the loans in foreclosure, which is even further proof that the latest trend is that delinquency and foreclosure rates are very much on a steep downward slope.

With more home buyers in a better financial state thanks in part to an improving economy, there are fewer delinquencies being seen on loan payments and, thus, fewer foreclosures. This is welcome news for lenders and borrowers, alike. If you’d like to learn more about your Dallas mortgage options, contact our team of professionals today.