Industry News

Home loan delinquency rate falls in second quarter

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A survey of more than 42.5 million loans nationwide suggests that overall, homeowners are keeping up with their mortgage payments even as interest rates go up and their property appreciates more slowly. The Mortgage Bankers Association's quarterly survey of delinquent home loans shows a modest increase in the percentage of borrowers who are behind on payments of prime, subprime and FHA loans. But the overall delinquency rate fell 2 basis points to 4.39 percent compared to last quarter -- a reduction attributed to "significant decreases" in the delinquency rate for VA loans and loans 90 days or more past due. When compared to the same quarter last year, delinquency rates are up 5 basis points from 4.34 percent. A basis point is one one-hundredth of a percent. The survey also suggests that foreclosures remain stable. The percentage of home loans in the process of foreclosure nationwide at the end the second quarter was 0.99 percent, up 1 basis point from the last quarter, but down 1 bas...