MBA Survey Reports Lower Mortgage Delinquency Rates

Premier Insights - Industry Updates - MBA Survey Reports Lower Mortgage Delinquency Rates

After an uptick in the third quarter of 2018, the Mortgage Bankers Association reported delinquency rates on 1-4 family residential properties have fallen to an 18 year low.  This is according to the Mortgage Bankers Association National Delinquency Survey. 

Quoting from the press release, the report states:

The delinquency rate was down 41 basis points from the third quarter of 2018 and 111 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the fourth quarter rose by two basis points to 0.25 percent.

 

“Despite the small uptick this quarter, the healthy economy is overall supporting low mortgage delinquencies and foreclosure inventories,” said Marina Walsh, Vice President of Industry Analysis at MBA. “Unemployment is at its lowest level since 1969, wages have grown 3.1 percent year-over-year – the biggest jump in almost a decade – and job growth is averaging over 212,000 jobs per month thus far.”

The MBA had reported previously that delinquencies had risen slightly in the third quarter of 2018

Data from the FDIC reflect similar trends for commercial banks nationwide with respect to all loan assets.  The latest data available, the 3rd quarter of 2018, indicates that loan delinquencies 30 – 89 days past due were .35% of total assets.  This is the lowest level since 2001 (see graph below).

 loan delinquencies 30 – 89 days past due
Source: FDIC Statistics on Depository Institutions

The MBA survey indicates that delinquencies have fallen across all loan types on a year-over-year basis, including conventional and government sponsored products. 

The full press release as well as how to obtain copies of the full report can be found here:
https://www.mba.org/2019-press-releases/february/mortgage-delinquencies-dropped-to-18-year-low-in-the-fourth-quarter-of-2018


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