by Calculated Risk August 15, 2024 12:57 PM
Today’s Calculated Risk Real Estate Newsletter: MBA: Mortgage delinquencies to rise in Q2 2024
Short excerpt:
From the MBA: Mortgage delinquencies to rise in Q2 2024
The seasonally adjusted delinquency rate for mortgages on one- to four-unit properties increased to 3.97 percent. According to the Mortgage Bankers Association’s National Delinquency Survey, total unpaid loans will reach $10 billion by the end of the second quarter of 2024.
The following chart shows the percentage of delinquent loans by days past due: There was an overall increase in delinquencies in the second quarter, with the spike in the 90-day bucket in 2020 coming from loans in forbearance (which are included as delinquent but not reported to the credit bureaus).
The percentage of loans in the foreclosure process decreased year-over-year from 0.53% in Q2 2023 to 0.43% (red) in Q2 2024, remaining at historically low levels.
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The biggest concern is the rise in 30- and 60-day delinquency rates, which, while historically low, are increasing from 2.30% in Q2 2023 to 2.96% in Q2 2024. We don’t think this increase is a huge concern, but it’s something to watch.
There’s a lot more in the article.
