Delinquency drop signifies good news: report

The rate of residential mortgage delinquencies dropped to a seasonally-adjusted rate of 9.46 percent in the fourth quarter of 2009 over the previous quarter, according to a report from the Mortgage Bankers Association. This decline represents a 17 point decline between the third and fourth quarters last year, leading Jay Brinkmann, chief economist with MBA, to suggest that the delinquency tidal wave seen during the housing crisis may be nearing its end. “We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the subprime defaults in early 2007,” Brinkmann said. “The continued and sizable drop in the 30-day delinquency rate is a concrete sign that the end may be in sight.” TRD