MBA: Late Pay, Foreclosure Rates Fall

Delinquency and foreclosure rates fell across the board in the first quarter of this year, according to the Mortgage Bankers Association.Overall, 4.31% of loans were at least 30 days overdue at the end of the first quarter, down 15 basis points from year-end. The seasonally adjusted delinquency rate was also a 15-basis-point improvement from that of a year earlier. The foreclosure inventory declined to 1.08%, a drop of 21 bps from a year earlier. And the number of loans entering the foreclosure process also declined. Doug Duncan, chief economist of the MBA, attributed the improvement in credit quality to strong economic growth and the low interest rate environment. Moreover, he said that the likelihood of continued economic strength and job growth with only modestly rising interest rates bodes well for the future. "These expectations likely mean we will continue to see moderate declines in delinquencies for the next few quarters," Mr. Duncan said. The MBA can be found online at http://www.mortgagebankers.org.