Delinquencies on mortgages rise in first quarter

Real Estate Watch

July 05, 1998

Mortgage delinquencies nationwide rose in the first quarter of 1998, according to the National Delinquency Survey released last week by the Mortgage Bankers Association of America.

The survey, which covers about one-half of all residential mortgages, put the seasonally adjusted delinquency rate for mortgages on residential properties at 4.47 percent, up from 4.34 percent in the fourth quarter of 1997.

"Despite the increase, the delinquency rate is still relatively low by historical standards," said Paul Reid, executive vice president for MBA.

Most of the increase in mortgage delinquencies came in the 30-days-past-due category, which rose to 3.14 percent from 3.03 in the previous quarter.

The delinquency rate increased for each of the three loan types in the first quarter over the fourth quarter of 1997. The delinquency rate for conventional loans was 2.91 percent, up from 2.87; Federal Housing Administration loans grew to 8.35 from 8.27; and for Veterans Affairs loans, the mark was 7.22, up from 7.03.

When broken down into regions, the West experienced the largest increase in delinquencies, ending the quarter at 3.96 percent, up from 3.70 percent the previous quarter. The South maintained the largest percentage of delinquencies at 5.21 percent. In the Northeast, the percentage was 4.21, up from 4.17 percent.

Pub Date: 7/05/98

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