Late payments are plaguing the housing market. Delinquency on residential mortgages hit 5.1% of all loans in the second quarter of 2007, according to the Mortgage Bankers Association’s National Delinquency Survey. The rate does not include mortgages in foreclosure. About 1.4% of all mortgages are in the foreclosure process, and 0.7% went into foreclosure during the quarter.
“While the seriously delinquent rate for prime fixed loans was essentially unchanged from the first quarter of the year to the second, and the rate actually fell for subprime fixed rate loans, that rate increased 36 basis points for prime ARM loans and 227 basis points for subprime loans,” noted Doug Duncan, MBA’s Chief Economist and Senior Vice President of Research and Business Development.
MBA notes that four states, California, Florida, Nevada and Arizona, are where most of the problems are concentrated.
According to the MBA, 30-year fixed-rate mortgages increased to 6.42%; 15-year fixed-rate mortgages remained unchanged at 6.10%; and one-year ARMs increased to 6.52%.