U.S. Mortgage Delinquencies Jump
By DAMIAN PALETTA
March 13, 2007
WASHINGTON -- Delinquency rates for subprime adjustable rate mortgages reached 14.44% in the fourth quarter of last year, jumping 122 basis points in three months, the Mortgage Bankers Association said Tuesday.
It also reported that overall, delinquencies on one-to-four family homes jumped 28-basis points in the fourth quarter to 4.95%, according to the trade group's quarterly National Delinquency Survey.
"Subprime borrowers are more likely to be susceptible to the cumulative increases in interest rates that we have experienced and the resultant nationwide slowing of home price appreciation including outright declines in some markets," MBA Chief Economist Doug Duncan said.
MBA reported that 4.53% of the 5.97 million subprime loans in its survey were in foreclosure at the end of the fourth quarter, up from 3.86% that were in foreclosure at of the end of the third quarter.
Foreclosure inventory rates were much lower for prime loans. Just 0.50% of the 33.32 million prime loans in its survey were in foreclosure, up from 0.44% at the end of the third quarter.
Mr. Duncan said he expected delinquency foreclosure rates to level off towards the end of this year "as the housing market regains its footing."
The states with the highest overall delinquency rates were Mississippi at 10.64%, Louisiana with 9.10%, and Michigan with 7.87%.
By DAMIAN PALETTA
March 13, 2007
WASHINGTON -- Delinquency rates for subprime adjustable rate mortgages reached 14.44% in the fourth quarter of last year, jumping 122 basis points in three months, the Mortgage Bankers Association said Tuesday.
It also reported that overall, delinquencies on one-to-four family homes jumped 28-basis points in the fourth quarter to 4.95%, according to the trade group's quarterly National Delinquency Survey.
"Subprime borrowers are more likely to be susceptible to the cumulative increases in interest rates that we have experienced and the resultant nationwide slowing of home price appreciation including outright declines in some markets," MBA Chief Economist Doug Duncan said.
MBA reported that 4.53% of the 5.97 million subprime loans in its survey were in foreclosure at the end of the fourth quarter, up from 3.86% that were in foreclosure at of the end of the third quarter.
Foreclosure inventory rates were much lower for prime loans. Just 0.50% of the 33.32 million prime loans in its survey were in foreclosure, up from 0.44% at the end of the third quarter.
Mr. Duncan said he expected delinquency foreclosure rates to level off towards the end of this year "as the housing market regains its footing."
The states with the highest overall delinquency rates were Mississippi at 10.64%, Louisiana with 9.10%, and Michigan with 7.87%.
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