Home buyers bought more existing homes in the South than anywhere but the Midwest during the second-quarter of 1993. But apparently, they're not paying for them on time once they get them.
A National Association of Realtors survey of existing home sales showed that the South had a 6.5% increase in the second quarter over 1992 statistics, second only to the Midwest's 8.3% rise.
However, a third-quarter delinquency survey conducted by the Mortgage Bankers Association showed that seven of the 10 states with the highest delinquency rates were from the South, plus Puerto Rico, which had an 8.55% ratio of loan reports past due. The ever-strengthening Midwest had none in the top 10.
The Midwest has not only shown growth, it also appears to be a dependable region for mortgage bankers. It had three of the top 10 states--North Dakota, South Dakota and Wisconsin--with the lowest delinquency ratios. South Dakota had the lowest ratio of loans past due, just 1.83%.
Although things appear glum in Dixie, the MBA reported it still improved over its second-quarter ratio. It also said that nationwide mortgage delinquencies are at the lowest levels since 1974. The number of homeowners who were late making their home mortgage payments fell 18 basis points to 4.21% from the second-quarter--a full 39 basis points from the third quarter of 1992.
By loan type, the delinquency rate declined in conventional, FHA and VA loans. Specifically. 30-day delinquencies fell 12 basis points to 2.78%, while the two more serious categories--60- and 90-day delinquencies--also registered declines.A Late Charge For the SouthHighest Delinquency RatiosPuerto Rico 8.55%Tennessee 6.53Mississippi 6.25South Carolina 5.59Louisiana 5.56Georgia 5.56Texas 5.44Alabama 5.31Pennsylvania 5.03Washington, D.C. 4.94United States 4.37Lowest Delinquency RatiosSouth Dakota 1.83%Oregon 2.19Wyoming 2.26Hawaii 2.31North Dakota 2.46Colorado 2.59Idaho 2.75Vermont 2.77Washington 2.81Montana 2.83United States 4.37Based on the total past due reports for the third quarter of 1993.Source: Mortgage Bankers Association's Third-Quarter Delinquency Survey
