The delinquency rate for mortgage loans on residential properties in Pennsylvania was 8.24 percent at the end of the second quarter of 2011, an increase of 62 basis points from the first quarter of 2011, according to the Mortgage Bankers Association (MBA). The delinquency rate excludes loans in the process of foreclosure. The percentage of loans in Pennsylvania on which foreclosure was started during the quarter fell eight basis points to 0.63 percent, while the percentage of loans in the foreclosure process at the end of the quarter fell three basis points to 3.32 percent.
These rates are not seasonally adjusted. Mortgage delinquency rates normally rise between the first and second quarters of the year due to a variety of seasonal factors.
The delinquency rate for prime adjustable-rate mortgages (ARMs) increased 106 basis points to 10.53 percent and the rate for prime fixed-rate mortgages (FRMs) increased 30 basis points to 4.5 percent. The delinquency rate for the sub-prime ARM loans increased 177 basis points to 29.16 percent, while the rate for sub-prime FRMs increased 148 basis points to 22.92 percent. The delinquency rates for Federal Housing Administration (FHA) and U.S. Department of Veterans Affairs (VA) loans were 11.48 percent and 7.78 percent, respectively—up 150 basis points for FHA loans and up 78 basis points for VA loans.
The foreclosure starts rate for prime ARM loans in Pennsylvania decreased 19 basis points to one percent, while the rate for prime FRMs decreased two basis points to 0.4 percent. The foreclosure starts rate for sub-prime ARM loans decreased 10 basis points to 2.71 percent, while the rate for sub-prime FRMs decreased 31 basis points to 1.71 percent.
The percentage of prime ARM loans in foreclosure increased three basis points to 6.18 percent and increased four basis points to 1.97 percent for prime FRMs. The rate for sub-prime ARM loans increased 66 basis points to 20.23 percent, while the rate for sub-prime FRMs increased 14 basis points to 9.45 percent. The percentage of FHA loans in foreclosure decreased 16 basis points to 2.3 percent. The percentage of VA loans in foreclosure decreased 12 basis points to 2.41 percent.
Among the 50 states and the District of Columbia, Pennsylvania ranked 19th in delinquencies and 40th in foreclosures started. Mississippi ranked first in delinquencies with a rate of 12.86 percent and Nevada ranked first in foreclosure starts with a rate of 2.25 percent.
On a national level, the delinquency rate for mortgage loans on one- to four-unit residential properties was 8.11 percent on a non-seasonally adjusted basis, up 32 basis points from 7.79 percent in the first quarter of 2011. The seasonally adjusted delinquency rate on residential properties was 8.44 percent in the second quarter, up 12 basis points from last quarter’s seasonally adjusted rate. The non-seasonally adjusted percentage of loans in which foreclosure was started during the quarter decreased 12 basis points to 0.96 percent, while the non-seasonally adjusted percentage of loans in the foreclosure process at the end of the quarter fell nine basis points to 4.43 percent.