Still, the Washington-based group's quarterly delinquency report showed that short-term delinquencies are on the rise -- a foreboding number that could signal more foreclosures in the future.
The percentage of mortgage loans somewhere in the foreclosure process was 4.57% in the second quarter, down from 4.63% in the first quarter. The latest percentage is still up from a 4.3% rate a year ago.
However, the proportion of home loans one payment behind is now 3.51%, said Jay Brinkmann, the MBA's chief economist. This percentage peaked in the first quarter of 2009 at 3.77%, before falling to 3.31% by the end of last year.
Brinkmann cited a pair of reasons why some mortgage holders are falling behind.
"First, 30-day delinquencies are very closely tied to first-time claims for unemployment insurance. The number of first-time claims fell through most of 2009 but leveled off in 2010 and have started to rise again," he said in an MBA news release. See story on latest jobless claims.
"This increase in unemployment directly impacts mortgage delinquencies," he said.
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