Mortgage Delinquency Rates

May 30, 2022

Mortgage Rates

Today, I’ll share an update regarding mortgage delinquency rates in the United States according to the mortgage bankers association and the MBA.

The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 4.11% of all loans outstanding in the first quarter.

“The mortgage delinquency rate dropped for the seventh consecutive quarter, reaching its lowest level since the fourth quarter of 2019,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis.

Mortgage Delinquency Rates Chart

Mortgage Delinquency Rates chart

Let’s take a look at the mortgage delinquency rates chart. Total mortgage delinquencies have decreased for 7 consecutive quarters, which is a good sign. Look at the share of 90 days plus past due compared to pre-covid. We’ve been decreasing for 7 consecutive quarters. The share of 90 days plus past due still remains elevated compared to pre-covid.

And according to Marina Walsh, one of the MBA’s Vice presidents, “The probability of a significant foreclosure surge is minimal. Borrowers have more choices today to either stay in their homes or sell without resorting to foreclosure.”

Why does Marina Walsh think so?

In my opinion, we see a low share of delinquent mortgages right now because house prices have increased over 10% for the past two years in a row. Many people have equity in their houses. If they’re behind on their mortgages and have a financial hardship, they probably would sell their houses rather than foreclose.

The MBA also shared the top five states with the largest quarterly decreases in their overall delinquency rate were: Louisiana, New Jersey, Indiana, Mississippi, and Maryland.

Let me know if you have any more questions. I would love to help you find the house of your dreams! Also, check out my Instagram page – realtor.katya. I hope you liked this post. If you’re interested to find out more about Miami news, check out these posts below.

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