San Diego Real Estate Blog

The delinquency rate for mortgage loans on residential properties rose to 9.24 percent of all loans outstanding as of the end of the second quarter of this year, up 12 basis points from the first quarter of 2009, and up 283 basis points from one year ago, according to the most recent Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 64 basis points from 8.22 percent in the first quarter of 2009 to 8.86 percent this quarter, according to the report. The delinquency rate breaks the record set last quarter, based on MBA data dating back to 1972.

“While the rate of new foreclosures started was essentially unchanged from last quarter’s record high, there was a major drop in foreclosures on subprime ARM loans,” said Jay Brinkmann, MBA’s chief economist. “The drop, however, was offset by increases in the foreclosure rates on the other types of loans, with prime fixed-rate loans having the biggest increase. As a sign that mortgage performance is being driven by unemployment, prime fixed-rate loans now account for one third of foreclosure starts. A year ago they accounted for one fifth.

California, Florida, Arizona, and Nevada continue to have a disproportionately high share of foreclosures, although the share has fallen slightly from last quarter, according to the report, with 44 percent of all of the nation’s new foreclosures during the second quarter of this year, down from 46 percent in the first quarter.

Leonardo Gonzalez

ChulaVistaCommunities.com