Delinquency Rate Edges Up in 2Q

The home loan delinquency rate increased modestly in the second quarter but remained lower than it had been a year earlier, according to the Mortgage Bankers Association's National Delinquency Survey.Nationally, 4.43% of home loans were at least 30 days past due at the end of the second quarter, up 10 basis points from the first quarter, according to the MBA. But the seasonally adjusted delinquency rate was down 54 bps from that of the second quarter of 2003. The inventory of loans in foreclosure fell in the second quarter to 1.16%, down 11 bps from the inventory in the first quarter and down 19 bps from that of a year earlier. MBA chief economist Douglas Duncan said the second-quarter increase in the overall delinquency rate is probably an aberration. "Based on the continued expansion of the economy and strong home-price growth in many regions, it is unlikely this small upward blip represents a reversal of the downward trend in delinquencies we have seen since the middle of 2001," he said.