US Mortgage Delinquency Rate Climbed to 37-Year Record High in Q3 2009
The US mortgage delinquency rate climbed to 37-year record high in Q3 2009, according to the latest National Delinquency Survey carried out by the Mortgage Bankers Association (MBA).
According to the latest data, the seasonally adjusted delinquency rate for mortgage loans on 1- to 4-unit residential structures incereased to 9.64% of all loans outstanding as of the end of Q3 2009, representing a year-over-year increase of 265 basis points.
The non-seasonally adjusted mortgage delinquency rate rose to 9.94%, representing an increase of 108 basis points compared to the Q2 2009 deliquency rate of 8.86%. The delinquency rate registered in Q3 2009 was the highest on record since the start of the MBA survey in 1972.
The MBA survey also reports that the percentage of loans on 1- to 4-unit residential structures that were in the foreclosure process at the end of Q3 2009 was 4.47%, while the percentage of loans that had entered the foreclosure process or had at least one payment past due reached 14.41%.
Florida, California, Arizona and Nevada were among the hardest hit states as 43% of all foreclosures that started in the third quarter involved properties located in these states.
According to the MBA press release, the increase in the US mortgage delinquency rate has been driven by the deteriorating job market. MBA predicts that US delinquency rates and foreclosure rates will continue to worsen mainly due to the continuing deterioration of the job market.
If you have an interesting comment in relation to this article please use the form below Related Posts to submit it. Please read submission guidelines before writing and submitting your comment.
