GO
Loading...

Enter multiple symbols separated by commas

Mortgage Delinquency Rate Rises as Inventory Eases

Foreclosure bank owned mortgage delinquency
Mark Ralston | AFP | Getty Images

The delinquency rate on U.S. home mortgages rose in the first quarter as more homeowners fell behind on payments for the first time, data from an industry group showed on Thursday.

The seasonally adjusted delinquency rate on all loans rose to 7.25 percent from 7.09 percent in the first quarter but was down from 7.40 percent a year ago, according to the report from the Mortgage Bankers Association.

The number of loans that were 30 days late on payments rose to 3.21 percent from 3.04 percent at the end of last year. Mortgages that were 90 days or more past due, which are considered less likely to get back on track, edged down to 2.88 percent from 2.89 percent.

Six years after its far-reaching collapse, the housing market started to turn the corner last year with prices rising, inventory tightening and low interest rates enticing some buyers.

"On the delinquency side, it's a small increase but we're back to precrisis levels. That number is just going to track what's happening in the job market," said Michael Fratantoni, MBA's vice president of research and economics.

Delinquency rates include mortgages that are at least one payment behind but have not yet entered the foreclosure process. Foreclosure inventory fell to 3.55 percent from 3.74 percent, while the number of loans starting the process held steady at 0.7 percent, the lowest level since the second quarter of 2007.

Among the different types of loans, subprime fixed and adjustable rate mortgages saw the largest increases in delinquencies, though there were fewer subprime loans sitting in the foreclosure process.

The two categories make up more than 10 percent of overall mortgages, the MBA said.

_ By Reuters

Contact Real Estate

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.
  • Diana Olick

    Diana Olick serves as CNBC's real estate correspondent as well as the editor of the Realty Check section on CNBC.com.

Home prices and supply map

  • Track the latest moves in sales, prices and inventory in some of the largest housing markets across the country.

Latest Special Reports

  • Whether you're young and just getting started investing or moving closer to retirement, factoring in age will keep you ahead of the game.

  • For Small Business Week, CNBC goes coast-to-coast and out onto Main Street with business owners powering the US economy.

  • Tips on the best-performing portfolio strategies and global market trends that can help you become a smarter investor.