U.S. homeowners are paying their mortgage on time, according to new data from the Mortgage Bankers Association (MBA). MBA states that the mortgage delinquency rate has fallen to the lowest rate since it started tracking this metric in 1979.
“Buoyed by a resilient job market, homeowners are continuing to make their mortgage payments,” said Marina Walsh, vice president of industry analysis for MBA.
The delinquency rate for one- to four-unit properties dropped to 3.37% during the second quarter, down 0.27% year over year and 0.19% quarter over quarter. Meanwhile, the percentage of foreclosure actions fell by 0.03%.
Furthermore, delinquencies were down among all mortgage types, including FHA and VA mortgages, although Walsh said homeowners with FHA loans will be the first to feel distress when the economy slows.