Overdues Jump; Foreclosures Hit Record High

The delinquency rate on residential, single-family mortgage loans reached 5.59% in the third quarter, nearly half a percentage point higher than in the second quarter, according to the MBA's national delinquency survey.The third-quarter delinquency rate was up 47 basis points from the level recorded in the second quarter and up 92 bps from that of a year earlier. The percentage of loans in foreclosure also increased sharply, rising to 1.69% of all loans outstanding. That was up 29 bps from the second quarter and up 64 basis points from one year earlier. The percentage of loans entering foreclosure rose 13 bps from the second quarter to 0.78%. Both the foreclosure inventory and foreclosure start levels were at record highs. The overall delinquency rate was the highest reported by the Mortgage Bankers Association since 1986.