MBA Numbers Mirror RealtyTrac Data:
The number of delinquent mortgage payments and foreclosures jumped in recent months, according to a new survey released today by the Mortgage Bankers Association. The MBA’s quarterly report — surveying more than 42 million mortgages nationwide — found that the rate of delinquencies and foreclosures rose to 4.7 percent from July through September.
Among subprime borrowers, the rate of delinquencies and foreclosures were much higher, rising to 12.6 percent in the third quarter. The study also revealed that 13.2 percent of all subprime adjustable mortgages were delinquent or going through the foreclosure process in the third quarter.
“Third quarter delinquency rates increased across the board,” said Doug Duncan, MBA’s chief economist. “Increases in delinquency rates were noticeably larger for subprime loans, particularly subprime ARMs.”
Looking ahead to 2007, the mortgage association expects delinquencies and foreclosures to continue on the rise at a “modest increase” over the next several quarters “as the housing market bottoms.”
The MBA survey mirrors recent research conducted by RealtyTrac. More than 120,334 properties nationwide entered some stage of foreclosure in November, an increase of 4.1 percent from the previous month, according to RealtyTrac’s U.S. Foreclosure Market Report.
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