In second-quarter 2024, high home prices and soaring mortgage rates caused more homeowners to struggle with their loan payments. But data shows a slight recovery as mortgage delinquencies fell in the third quarter.
That silver lining comes from the Mortgage Bankers Association (MBA)’s National Delinquency Survey. According to the MBA, the seasonally adjusted rate for residential property (one- to four-unit) delinquencies dropped to 3.92% at the end of September. That’s down from 3.97% at the end of June, but it is up 30 basis points from one year ago. Delinquency rates include loans at least 30 days past due.
The quarterly survey reviews late-payment and foreclosure rates based on loan type, geographical information and demographic data. MBA uses the survey to track and forecast mortgage performance trends in the housing market. Surveyed loan types include Federal Housing Administration (FHA) loans, U.S. Department of Veterans Affairs (VA) loans and conventional loans.
FHA loans had the largest delinquency rate decrease in the third quarter, falling by 14 basis bps to 10.46%. The rate for VA loans declined by 5 bps to 4.58% and the rate for conventional loans shed 1 bps to 2.63%.
Year over year, delinq …
See the full Home Prices article, or, read more Arizona real estate investing news
