MBA: Mortgage Delinquencies Increase in Q4 2023

Today, in the Calculated Risk Real Estate Newsletter: MBA: Mortgage Delinquencies Increase in Q4 2023

A brief excerpt:

From the MBA: Mortgage Delinquencies Increase in the Fourth Quarter of 2023

The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.88 percent of all loans outstanding at the end of the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

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The following graph shows the percent of loans delinquent by days past due. Overall delinquencies increased in Q4. The sharp increase in 2020 in the 90-day bucket was due to loans in forbearance (included as delinquent, but not reported to the credit bureaus).

The percent of loans in the foreclosure process decreased year-over-year from 0.57 percent in Q4 2022 to 0.47 percent in Q4 2023 (red), even with the end of the foreclosure moratoriums, and remain historically low.

The primary concern is the increase in 30- and 60-day delinquencies (blue), although still historically low. I don’t think this increase is much of a concern.

There is much more in the article.