Delinquency Rate on Mortgages Up During Quarter
WASHINGTON — The number of Americans behind on their mortgage payments rose in the April-June quarter for the second time in 2 1/2 years, an organization of lenders said Tuesday.
The Mortgage Bankers Assn. of America said the number of homeowners who were at least 30 days late in making a mortgage payment edged up to 4.90% of the 9.8 million mortgages surveyed in the second quarter.
The increase in late mortgage payments was the second rise since the fourth quarter of 1985.
The delinquency rate had fallen in the first quarter to 4.78% after rising in the last three months of 1987 to 4.95%. The third quarter 1987 level--4.71%--was the lowest in eight years.
Warren Lasko, executive vice president of the association, called the latest increase disturbing.
“However,†he said in a statement, “one quarter does not make a trend, and this uptick should be kept in perspective.â€
The Mortgage Bankers’ report said employment growth and rising wages should continue to shrink the delinquency rate in future quarters.
Despite the slightly higher delinquency rate in the second quarter, foreclosures held steady at 0.27%, the same as in the January-March period and the last three months of 1987.
Even with the latest rise in the delinquency rate from the previous quarter, all regions of the country had a lower delinquency rate when compared to a year earlier.
The Northeast had the lowest delinquency rate, 3.78% in the second quarter, down from 4.13% a year earlier. It was followed by the West, where the delinquency rate dropped from 4.14% to 4.05% over a year.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
