Mortgage Delinquencies Increased in 2022Q4
Mortgage Delinquencies Increase in the Fourth Quarter of 2022
The Mortgage Bankers Association (MBA) is reporting that, according to its National Delinquency Survey, the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 3.96% of all loans outstanding at the end of 2022Q4.
The delinquency rate was up 51 basis points from 2022Q3, but still down 69 basis points from one year ago. The percentage of loans on which foreclosure actions was started in 2022Q4 fell by 1 basis point to 0.14%.
According to Marina Walsh, CMB, MBA’s Vice President of Industry Analysis, over the past 15 years, mortgage delinquencies have tracked very close with employment conditions. Despite recent indicators of resiliency in the job market, including the unemployment rate declining to 3.4% in January, MBA still forecasts slower hiring and rising unemployment, with the unemployment rate rising to 5.2% by the end of 2023. This will likely mean further increases in mortgage delinquencies, Walsh says.
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