Mortgage rates down, delinquencies rise
Bankrate.com reports that as of their March 22 survey, "The benchmark 30-year fixed-rate mortgage fell 4 basis points to 6.39 percent . . . One year ago, the mortgage index was 6.15 percent; four weeks ago, it was 6.34 percent."
However, along with the indicators of a changing real estate market, it is also reported that "Every three months, the Mortgage Bankers Association calculates the seasonally adjusted delinquency rate -- the percentage of home loans in which the payments are at least 30 days past due. In the final quarter of 2005, 4.7 percent of mortgages were delinquent, compared to a 4.38 percent delinquency rate a year before. That's a 7.3 percent increase in late payments in a year . . . But when the MBA performs statistical magic to remove the effects of Hurricane Katrina on mortgages in Louisiana and Mississippi, the national delinquency rate is 4.55 percent in the fourth quarter of 2005, not 4.7 percent. Still, it means delinquencies went up 3.9 percent in a year, and they'll continue to climb."
To read more: Bankrate.com March 22, 2006 report