U.S. Mortgage Delinquencies Up, Foreclosures Down

NEW YORK – U.S. mortgage delinquencies rose in the second quarter of 2004 from the first quarter, but an improving U.S. economy and strong home price appreciation should keep the downward trend in delinquencies intact, a U.S. mortgage industry group said on Wednesday.

The Mortgage Bankers Association said its measure of outstanding mortgages that were delinquent rose to 4.43 percent on a seasonally adjusted basis for the second quarter from the first quarter’s 4.33 percent. The latest reading is down from the 4.97 percent for the same 2003 quarter.

“Based on the continued expansion of the economy and strong home-price growth in many regions, it is unlikely this small upward blip represents a reversal of the downward trend in delinquencies we have seen since the middle of 2001,” Douglas Duncan, the group’s chief economist, said in a statement.

The percentage of severe delinquent loans, which are 90 days or more past due, or in foreclosure, fell during the second quarter from the first quarter, but the percentage of mortgages that are 30 to 59 days delinquent climbed between the first and second quarters, the group said.

For this complete story, please visit U.S. Mortgage Delinquencies Up, Foreclosures Down.