by Risk calculated on 11/05/2023 10:19:00
From the MBA: First-quarter 2023 mortgage delinquency rate drops to second-lowest level in MBA survey
Mortgage delinquency rate on one to four unit residential properties decreased to one seasonally adjusted rate of 3.56% of all outstanding loans at the end of the first quarter of 2023, according to the Mortgage Bankers Association (MBA) National Delinquency Survey.
The crime rate was down 40 basis points from the fourth quarter of 2022 and 55 basis points from a year ago. The percentage of loans on which foreclosure actions were initiated in the first quarter increased by 2 basis points to 0.16%.
“The mortgage delinquency rate fell to its lowest level in the first quarter since the MBA survey began in 1979 and was the second-lowest quarterly rate overall, just 11 basis points above the survey low in the third quarter of 2022,” said Marina Walsh, CMB, vice president of analytics. of the MBA industry. “Mortgage defaults and the unemployment rate continue to track each other closely, with the April unemployment rate falling back to a 54-year low of 3.4% set in January.”
Walsh added, “In line with the resilience of the labor market, the performance of existing mortgages has exceeded expectations. In all states, there was an improvement in the first quarter compared to a year ago. Year-over-year chargebacks for all product types—FHA, VA, and conventional—also fell.
added emphasis
Click on the graphic to enlarge the image.
This graph shows the percentage of overdue loans by days past due. Overall, delinquencies decreased in the first quarter.
From the MBA:
Compared to last quarter, the seasonally adjusted mortgage arrears rate decreased for all outstanding loans. By stage, the 30-day delinquency rate decreased by 15 basis points to 1.77%, the 60-day delinquency rate decreased by 11 basis points to 0.55% and the 90-day delinquency band fell 14 basis points to 1.24%.
The delinquency rate includes loans that are at least one past due, but does not include loans in foreclosure. The percentage of loans in foreclosure at the end of the first quarter was 0.57%, unchanged from the fourth quarter of 2022 and 4 basis points higher than a year ago.
The large increase in the 90-day tranche in 2020 was due to forborne loans (included as delinquent, but not reported to credit bureaus).
The percentage of loans in the process of foreclosure increased slightly year-over-year in the first quarter with the end of foreclosure moratoria, but remains historically low.