Mortgage Delinquencies Reach Historic Low | Waccabuc Real Estate

In the fourth quarter of 2019, the delinquency rate for mortgage loans on single-family homes¹ decreased to 3.8% of all loans outstanding, according to the latest iteration of the Mortgage Bankers Association’s National Delinquency Survey. This is the lowest it has been since the series started in 1979. The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. Additionally, the “seriously delinquent” rate, the percentage of loans that are 90 days or more past due or are in the process of foreclosure decreased to 1.8%, the lowest it has been since 2005.

The above figure shows the serious delinquency rate of all loans and its components, FHA and VA loans, which are government-insured mortgages, and conventional loans. The seriously delinquent rates of FHA and VA loans increased from the previous quarter. For the fourth quarter of 2019, the five states with the lowest seriously delinquent rates were Colorado, California, Washington, Arizona, and Oregon and the five states with the highest seriously delinquent rates were Puerto Rico, New York, Mississippi, Louisiana, and Maine.

Notes:

1. For simplicity, the term “single-family” is used but denotes one- to four-unit residential properties.

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