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BY BRAD BECKETT ON AUGUST 22, 2019
According to the latest Mortgage Bankers Association (MBA) National Delinquency Survey, mortgage delinquencies increased 11 basis points from the first quarter of 2019 and 17 basis points from one year ago. The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.53% of all loans outstanding at the end of the second quarter of 2019. The foreclosure inventory rate came in at 0.9% at the end of Q2, which was the lowest since the fourth quarter of 1995. In addition, they point out that on a year-over-year basis, total mortgage delinquencies increased for all loans outstanding. The delinquency rate increased by 16 basis points for conventional loans, increased 52 basis points for FHA loans, and increased 27 basis points for VA loans from the previous year.
“The unemployment rate remains quite low, but the national mortgage delinquency rate in the second quarter rose from both the first quarter and one year ago. The economy is slowing, and this poses the risk of further increases in delinquency rates,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “Across loan types, the FHA delinquency rate posted the largest variance, increasing 29 basis points from last quarter and 52 basis points from a year ago.”
MBA Chart of the week 8/16/19
Click here to read the full report at MBA.org.
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BY BRAD BECKETT ON AUGUST 21, 2019
A recent report from the Wall Street Journal (reposted by Realtor.com) says that U.S. mortgage debt reached a record in Q2, exceeding a peak last seen in 2008. Data from the Federal Reserve Bank of New York show that mortgage balances were up $162 billion to $9.406 trillion. The previous high water mark was $9.294 trillion back in Q3 of 2008. The article also pointed out that total household debt has been on the rise since mid-2013 rising 1.4% in the first quarter to $13.86 trillion, marking the 20th consecutive quarter of increases. Indeed…
“The big picture is that when you look at mortgages, which is the biggest piece of [household debt], it still looks pretty healthy,” said Michael Feroli, chief U.S. economist at JPMorgan Chase, noting that while household debt has grown, so have incomes.
Just for a point of historical reference, the chart below shows mortgage rates since 1974:
Historical 30-year fixed rate mortgage rates – John Burns Real Estate Consulting
Click here to read the full story on Realtor.com
Click here to read the full story at the Wall Street Journal.