The number of homeowners behind on their mortgage payments increased during the second quarter of 2011, according to information from the Mortgage Bankers Association.
During the second quarter, 8.44 percent of all mortgage loans were delinquent, an increase of 0.12 percent from the previous quarter. The rate is down, however, 1.41 percent from the same quarter of 2010.
“Mortgage delinquencies are no longer improving and are now showing some signs of worsening,” Jay Brinkmann, chief economist of the MBA said in a statement. “While overall mortgage delinquencies increased only slightly between the first and second quarters of this year, it is clear that the downward trend we saw through most of 2010 has stopped.”
He added that
“The good news is the continued decline in long-term delinquencies, those mortgages that are three payments or more past due. The bad news is that drop is offset by an increase in newly delinquent loans one payment past due.”
Among all loans 7.85 percent were seriously delinquent, meaning 90 or more days late, a decline of 0.25 percent from the previous quarter, yet the number of newly delinquent loans outweighed that improvement.
The rise in delinquencies is a direct reflection on the unhealthy state of the job market, according to the MBA, as the unemployment increased to 9.2 percent in the second quarter from 8.8 percent during the preceding three months.
“Mortgage loans that are one payment, or 30 days, past due are very much driven by changes in the labor market, and the increase in these delinquencies clearly reflects the deterioration we saw in the labor market during the second quarter,” Brinkmann said.