MBA Research this week released first quarter of 2019 results of its National Delinquency Survey (NDS). The overall delinquency rate rose from an 18-year low, reaching a seasonally adjusted rate of 4.42 percent. By loan type, the total delinquency rate for conventional loans increased 27 basis points to 3.46 percent compared to the fourth quarter of 2018. The FHA delinquency rate increased 28 basis points to 8.93 percent, and the VA delinquency rate increased by 66 basis points to 4.37 percent.
Despite the quarterly uptick of 36 basis points, the overall delinquency rate was still down 21 basis points from one year ago. This is another sign of the very strong economic environment, bolstered by low unemployment and rising wage growth. Moreover, the serious delinquency rate – the percentage of loans that are 90 days or more past due or in the process of foreclosure – dropped across all loan types from the previous quarter and a year ago to its lowest overall level since the second quarter of 2006. Additionally, the foreclosure inventory rate of 0.92 percent was at its lowest level since the fourth quarter of 1995.
Source: Mortgage Bankers Association National Delinquency Survey
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