US mortgage delinquencies decline in Q2, inventory of homes in foreclosure falling

Discussion in 'Economics' started by ASusilovic, Aug 26, 2010.

  1. The mortgage delinquency rate in the US eased in the second quarter of this year but a rise in short-term delinquencies signalled that more foreclosures could be in the pipeline, the Mortgage Bankers’ Association said on Thursday.

    The mortgage delinquency rate declined from 10.06 per cent in the first quarter to 9.85 per cent in the second quarter, as homeowners succeeded in modifying their loans. The inventory of homes in foreclosure also declined in the second three months of the year, falling to 4.57 per cent of all US houses, the first such decline since 2006.

    In spite of the improvement, there were worrying signs that it might be temporary. Short-term delinquencies, which account for loans 30 days past due, rose to 3.51 per cent from 3.45 per cent of all homes in the first quarter. Those are closely tied to initial jobless claims, which have been on the rise recently.

    “Ultimately the housing story, whether it is delinquencies, homes sales or housing starts, is an employment story,” said Jay Brinkmann, MBA’s chief economist. “Only when we see a consistent increase in employment will we see an increase in sales and starts, and a sustained improvement in the delinquency numbers.

    That´s in line what Citi´s Parsons said 2 days ago : credit card delinquencies and mortgage delinquencies are falling. Citi has turned the corner...
  2. pupu


    hallelujah! Salvation at last!
    Let us rejoice and go dancing in the streets!
    Cheese for everyone!