Delinquencies See 28 BP Increase

The delinquency rate for single-family mortgage loans rose to 4.67% in the third quarter, up 28 basis points from the second quarter and 23 basis points from one year earlier, according to the Mortgage Bankers Association.The increase was spread across all major loan types, most notably for subprime credit quality and Federal Housing Administration loans, the MBA said. The percentage of loans in foreclosure and entering the foreclosure process also rose. The MBA said 1.05 of all loans outstanding were in foreclosure at the end of the third quarter, six basis points higher than at the end of the second quarter. MBA chief economist Doug Duncan said the increase was anticipated, given the slowdown in home price appreciation. "It is important to remember that delinquency and foreclosure rates have been quite low the last two years," he said.