WASHINGTON - The delinquency rate for mortgages rose 10 basis points, to 3.82%, in the second quarter, the Mortgage Bankers Association's quarterly survey found.
The amount of loans that went into foreclosure dropped 4 basis points, to 0.26%, and the amount in foreclosure at the end of the quarter fell 10 basis points, to 0.85%.
Douglas G. Duncan, the trade group's chief economist, said the uptick in delinquencies "was not unexpected."
"The large volume of loans originated from 1997 through 1999 is starting to move toward its peak delinquency years," he said, adding that the recent slowdown in the economy, caused by Federal Reserve rate hikes, also played a role.
Mr. Duncan attributed the drop in foreclosures to rising home values, which enabled troubled borrowers to sell their homes and pay off their mortgages.