WASHINGTON (5/7/15)--Both delinquencies and foreclosures dipped in the first quarter, according to the Mortgage Bankers Association (MBA).
The aggregate delinquency rate fell to 5.54% from 5.68% in the fourth quarter and dropped by 57 basis points on a year-over-year basis.
“Mortgage credit quality continues to steadily recover from the crisis, and delinquency rates are the lowest they have been since the second quarter of 2007,” said Jesse Rogers, Moody’s analyst (Economy.com May 6). “The aggregate mortgage delinquency rate is down 4.5 percentage points from the peak but remains slightly above precession levels.”
Moody’s said the drop was fueled by late-stage delinquencies, such as serious delinquencies--those with loans 90 days or more past due--which fell to 4.24% from 4.52%.
Foreclosures, meanwhile, fell 1 basis point to 0.45% during the first quarter, though Rogers says there is still cause for concern.
“While the first quarter report is encouraging, there is still a large number of troubled loans either in or heading to foreclosure,” Rogers said. “Some 2.1 million mortgages out of 40.8 million remain in foreclosure or are more than 30 days past due. This still-large pipeline of distressed properties is a near-term hurdle for the housing recovery.”
The MBA also reported Wednesday that mortgage applications took a step back last week, with refinance activity dropping by 3.7% and purchase application activity staying relatively flat.
Further, mortgage rates generally ticked up for the week, with the 30-year fixed-rate mortgage rate climbing 2 basis points to 3.85%.