The Deep South posted the worst delinquency rates in the country during the second quarter, according to data released last week by the Mortgage Bankers Association of America.
In all, eight of the 10 states with the worst mortgage delinquency rates were in the South. (See chart above.)
The results were surprising because the South has lower unemployment and higher job creation rates than any other part of the country, said Marc Vitner, an economist with First Union Corp. in Charlotte, N.C.
"It bears watching but my bet is that it's just some sort of statistical quirk," Mr. Vitner said.
Surprise Expressed
Mississippi had the nation's top delinquency rate, with 7.66% of its home loans past due by 30 days or more. Tennessee was next highest with 6.16%, followed by South Carolina (5.71%) add Georgia (5.45%).
Some lenders in Mississippi said they were mystified by the high delinquency rate attributed to their state.
"Don't include Bank of Mississippi in that |cause we're nowhere near it," said William G. Hardin Jr., first vice president of the Tupelo-based lender. Mr. Hardin said the delinquency rate on his portfolio was 1.69%.
"Overall, the state of Mississippi is not in that bad a shape in terms of delinquencies," agreed Larry Moore, head of loan servicing at Deposit Guaranty Mortgage Co. of Jackson, Miss., His firm's delinquency rate was "between 4% and 4.5%," he said.
At the other end of the spectrum, the Northwest had the lowest incidence of delinquency. Of the 10 states with the best rates. six were in that region.
With a mere 1.67% of its loans 30 days or more past due, South Dakota had the nation's best rate. Oregon was next with 1.94%. Hawaii had the third lowest delinquency rate, 2.12%.
Meanwhile, the national average interest rate on the 30-year, fixed-rate mortgage fell for the fifth straight week, to another all-time low. The national average rate was 6.93, according to preliminary survey results from HSH Associates in Butler, N.J.
The Mortgage Bankers Association's refinance index rose for the third straight week, to 1381 - its highest point since March. An index value of 100 corresponds to the level of March 1990.
