The delinquency rate for home loans on residential properties with between one and four units rose slightly to 8.32 percent between the fourth quarter of 2010 and first of 201, but decreased sharply on a year-over-year basis, according to the latest statistics from the Mortgage Bankers Association. That’s up from the 8.25 percent seen in the last quarter, but down significantly from the 10.06 percent in the first quarter last year.
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“Most of these numbers continue to point to a mortgage market on the mend,” said Jay Brinkmann, the MBA’s chief economist. “Short-term delinquencies remain at pre-recession levels. Loans 90 days or more delinquent have now dropped for five straight quarters and are at their lowest level since the beginning of 2009.”
In fact, 90-day delinquencies and homes in foreclosure fell to 8.1 percent, the report said. That’s down from both the 8.6 percent in the fourth quarter of 2010 and a year-over-year drop from 9.54 percent.
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Many types of loans have seen continual declines in delinquency and default rates in recent months, due to both the continuing improvement of the economy and also previous charge offs that have locked risky borrowers out of the lending system.