Delinquencies Improved In Q2, But The Future Looks Bleak
Mortgage delinquencies improved in the second quarter of 2023, but homeowners face increasing credit stress as the year drags on.
The Mortgage Bankers Association reported that the delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 3.37% of all loans outstanding at the end of Q2 2023, down 9 bps from Q1 and 27 bps YOY.
This is the lowest level on MBA’s record, which dates back to 1979.
“Buoyed by a resilient job market, homeowners are continuing to make their mortgage payments,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis.
Foreclosure actions also dipped by 3 bps to 0.13%, and foreclosure inventory is down from last quarter.
But Walsh pointed…