Delinquency Rate Hits 3-Year Low

The overall home loan delinquency rate fell 34 basis points to 4.28% in the third quarter, according to the Mortgage Bankers Association.That's the lowest ratio of homeowners who are late making their mortgage payments in three years, the MBA said. Moreover, it was the largest one-quarter decline in the overall delinquency rate in more than a decade. MBA chief economist Doug Duncan said the decline in delinquencies reflects an economic recovery that is gaining steam. He said continued economic growth and job gains in future quarters are "likely to give support to the downward trend in delinquency rates." One dark spot in the report: the number of loans entering foreclosure increased by 6 bps, reflecting fallout from second-quarter job losses, Mr. Duncan said. The MBA can be found online at http://www.mortgagebankers.org.