Declines in Short-Term Mortgage Delinquencies

Nationally, the high levels of loans in foreclosure suggest continued price concerns for builders due to distressed home sales competing with new construction. But the declines in the short-term delinquency rates are good news for the emerging recovery in housing. Courtesy of Michigan Radio

Mortgage Bankers Association released data for the fourth quarter of 2010 for the National Delinquency Survey. The results show continued high levels of mortgage loans in the foreclosure process but declines in delinquencies of loan payments.

Jay Brinkman, MBA's Chief Economist stated that these latest delinquency numbers represent significant, across the board decreases in mortgage delinquency rates in the US. Total delinquencies, which exclude loans in the process in foreclosure, are now at their lowest level since the end of 2008. Mortgages only one payment past due are now at the lowest level since the end of 2007, the beginning of the recession.

The share of loans more than 90 days overdue saw the most significant declines: down from a peak of 5.02 percent in the first quarter of 2010 to 3.63 percent in the fourth quarter. The share of loans in the 60 day overdue category has now fallen from 1.82 percent of loans in the first quarter of 2009 to 1.34 percent of loans in the fourth quarter of 2010.

- Courtesy of NAHB