Mortgage Delinquencies Fall to 3-Year Low!

Reuters | December 09, 2003 12:42:00 PM ET

[Steven W.]

NEW YORK (Reuters) - U.S. mortgage delinquencies during the last quarter declined the most in more than a decade, a trade group said on Tuesday in the latest sign the world's biggest economy is on the mend.

The Mortgage Bankers Association said the percentage of outstanding mortgages that were delinquent fell to 4.28 percent in the third quarter, the lowest level in three years, from 4.62 percent in the second quarter.

The strengthening economy should result in lower delinquencies and foreclosures in future quarters, said Doug Duncan, chief economist at the trade group.

The percentage of home loans in foreclosure in the third quarter held at 1.12 percent, unchanged from the second quarter.

But the percentage of home loans entering foreclosure rose to 0.38 percent from 0.32 percent in the second quarter, suggesting the percentage of loans going bad could tick a bit higher next quarter before declining, Duncan said in a conference call with reporters.

The economy grew at its fastest pace in two decades during the third quarter and is adding jobs after the labor market stagnated for three years.

The extent to which strong growth can be sustained is still the subject of debate. But if the economy grows at a 4 percent rate next year, as the MBA forecasts, then rising income growth and employment should translate to slower delinquencies, Duncan said.

The percentage point decline in delinquencies for one-to four-unit residential mortgage loans in the third quarter was the biggest since the first quarter of 1990.

[Steven W.]

More bad news for the bears and those regular posters who take such glee in doom & gloom, despair or outright joy at reporting increases in homelessness and foreclosures.

[Recovering_Democrat]

Tom Daschle is saddened, deeply saddened.

[Yo-Yo]

What with the 2 years of refinancing flurry, payments are down, down, down! I refinanced twice in two years, ultimately locking in 5.25%.

[Grampa Dave]

This is terrible news for the gloomers/doomers/gold spinners and of course the rats!

More people are buying a new home or upgrading, and there are less Mortgage Delinquencies.

Just another quagmire, GW has gotten us into.

[BenLurkin]

ping

[Liz]

This is terrible news for the gloomers/doomers/gold spinners and of course the rats!

Terry McAwful must be on "life support".....valium and vodka.

[talleyman]

Tom Daschle is saddened, deeply saddened.

Hitlery is p*ssed, deeply p*ssed.

[Grampa Dave]

Terry is way past the benigh effects of Valium. He has to be on high doses of anti depressants and injectable anti psychotic drugs.

Unless, Terry, is one of our moles. There are times, that I feel that he has to be one of our moles. He is more devastating to the rats than Patty was to the Reformed Party.

[Grampa Dave]

http://www.freerepublic.com/focus/f-news/1037051/posts

Federal Reserve Keeps Rate UNCHANGED at 1.0%


Posted on 12/09/2003 11:15:58 AM PST by William McKinley


Title says it all