Latest MBA Mortgage Delinquency Survey shows improvements
Posted on Thursday, February 23, 2012 at 6:01:35 PM
The delinquency rate for mortgage loans on one-to-four unit residential properties decreased to a seasonally adjusted rate of 7.58 percent of all loans that were outstanding as of the fourth quarter of 2011, according to MortgageBankers.org.
The percentage of loans that foreclosure actions were started during the third quarter of 2011 was down 0.99 percent, or nine basis points, from last quarter and down 28 basis points from one year ago in 2010. Consumers are readjusting to the slowly improving economy and making positive mortgage choices with their approved lending money.
"Mortgage performance continued to improve in the fourth quarter, reflecting the improvement we saw in the job market and broader economy. The total delinquency rate and foreclosure starts rate decreased and are back down to levels from three years ago. Employment is the key driver of mortgage performance and the mortgage delinquency rate is actually falling faster than the unemployment rate is declining," said Jay Brinkmann, MBA’s Chief Economist and Senior Vice President for Research and Education.
More and more positive news about the housing market is being filed away - resulting in new homebuying opportunities for smart consumers with residential lending in hand.