The delinquency rate for mortgage loans on one- to four-unit residential properties rose to 5.12% of all loans outstanding in the second quarter, up 0.28 percentage points from the first quarter and 0.73 percentage points higher than a year earlier, according to the Mortgage Bankers Association.
The delinquency rate covers mortgage payments that are 90 days or more past due, but does not include loans in foreclosure.
This (second) quarters foreclosure starts rate is the highest in the history of the survey (started in 1979), with the previous high being last quarters rate, the MBA said in the release, adding that adjustable-rate mortgages in both the prime and subprime sectors contributed significantly to the overall results.
Foreclosures stood at 1.4% of all loans outstanding by June 30, up 0.12 percentage points from the first quarter and up 0.41 percentage points from one year ago. California, Florida, Nevada and Arizona which have up to 32% of owners not living in their properties vs. a national average of 13% are the four states pushing the foreclosure rate up.