With the economic recovery slowing in the beginning of 2012, an increasing amount of borrowers found themselves unable to pay their mortgages on time. As a result, the mortgage delinquency rate rose in the second quarter of the year, according to the Mortgage Bankers Association.
The National Delinquency Survey showed the delinquency rate on one-to-four-unit residential properties increased to a seasonally adjusted rate of 7.58 percent of all outstanding loans.
"Mortgage delinquencies were up only slightly over the last quarter," said Jay Brinkman, MBA's chief economist. "Perhaps more important than the small size of the increase, however, is the fact that it reversed the trend of fairly steady drops in delinquencies we have seen over the last year."
According to Michael Fratantoni, vice president of research and economics at MBA, this was the first time in 2012 that the delinquency rate increased. The leading cause has been the slowing of the economy, especially slow job growth, which has put many Americans into a difficult financial position.