Given that delinquency rates have a strong seasonal tendency to improve in the first several months of each year, our initial read on this data - based on non-seasonally adjusted data, was mixed (see the April 19, 2010 comment). On May 19, the Mortgage Bankers Association released the seasonally adjusted data for the first quarter of 2010, indicating that in every category - total delinquencies, fixed prime, adjustable prime, fixed subprime and adjustable subprime - mortgage delinquencies surged to fresh, record highs in the quarter ended March 31, 2010. The charts below show the percentage of mortgages in each classification that are presently delinquent but are not yet in foreclosure.
Subprime delinquencies, of course, are substantially worse, with adjustable-rate subprime mortgages spiking to a delinquency rate approaching 30%.
Meanwhile, we saw of brief surge in new mortgage applications in April to take advantage of the $8000 first-time homebuyer's tax credit before it expired. Over the past few weeks, mortgage applications for purchase have plunged to a 13-year low (thanks to Calculated Risk for the graphic).
