Rate of delinquent mortgages falls

The rate of mortgages seriously delinquent or heading into foreclosure nationwide fell during the second quarter, according to data released this morning by the Mortgage Bankers Association.

Total delinquencies were at a rate of 9.85% of all loans outstanding as of June 30. And the percentage of loans on which foreclosures were started during the second quarter was 1.1%.

And while Michigan had the sixth-highest rate of 90-day and more past due mortgages with 5.58%, that represents a 70% decline from the first quarter. Michigan had 11.4% of all mortgages past due during the quarter. And a total of 10% of all loans were in the foreclosure process.

“These latest delinquency numbers contain a mixture of somewhat good news and somewhat bad news,” said Jay Brinkmann, the association’s chief economist.

While the seriously delinquent loans — those 90 days past due — fell, those just 30 days late continued to be elevated. They were at 3.51% in the second quarter compared to 3.77% in the first quarter. And that, he said, “may ultimately drive the foreclosure measures back up.”

Unemployment is closely tied to the 30-day delinquency figure.

“What is going to happen with delinquencies is going to be a question of jobs. It takes a job to make a mortgage payment,” Brinkmann said on a conference call this morning.

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