Tag Archives: Loan

WSJ analysis: Minnesota has lowest mortgage denial rate

I wonder if this is the reason Minnesota ranked # 1 in the Nation for Mortgage Fraud?  20% still seems high to me for denial rate.  I would assume someone may not qualify for the best interest rates, but may be able to put into a higher rate mortgage instead rather than just simply denied.

This story is Edina Realty, just re-posting:

The majority of homebuyers who sought home loans in Minnesota last year were approved, according to analysis from the Wall Street Journal. In fact, the newspaper’s findings show the state had the lowest mortgage application denial rate in the country in 2010 for homebuyers seeking a new mortgage as well as homeowners trying to refinance an existing mortgage.


According to the research, which looked at data from the nation’s 10 largest mortgage lenders, Minnesota’s home loan application denial rate was 19.9 percent last year. The average rate for the entire nation was 26.8 percent – up markedly from 2009’s level of 23.5 percent.

Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says.

Minnesota was the only state with a mortgage application denial rate lower than 20 percent, the Journal says. The mortgage application denial rate for Wisconsin and North Dakota was 23 percent and 21.1 percent, respectively – both lower than the national average.


In addition to the positive mortgage application acceptance rate in Minnesota, home loan interest rates have stayed near the same levels as at the beginning of 2011, making this year a premier time to purchase homes for sale in the state.

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Delinquencies Rise, Foreclosures Fall in Latest MBA Mortgage Delinquency Survey

Delinquencies Rise, Foreclosures Fall in Latest MBA Mortgage Delinquency Survey. Mortgage Bankers Association

This is troubling news.  We were seeing a trend of delinquencies and foreclosures falling, now this report is showing a reversal of that trend.  I guess we are not out of the woods yet… This is probably reflective of the unemployment rate inching up again.  Jobs, Jobs, Jobs is what the housing market needs…

Calculatedriskblog.com chart

From Calculatedriskblog.com: This graph shows the percent of loans delinquent by days past due.

Loans 30 days delinquent increased to 3.46% from 3.35% in Q1. This is probably related to the increase in the unemployment rate.

Delinquent loans in the 60 day bucket increased slightly to 1.37% from 1.35%.

There was a slight decrease in the 90+ day delinquent bucket. This decreased to 3.61% from 3.65% in Q1 2011.

The percent of loans in the foreclosure process decreased to 4.43%.

So short term delinquencies ticked up, and the 90+ day and in-foreclosure rates declined. I’ll have more later after the conference call this morning.

(From MBAA Press Release) WASHINGTON, D.C. (August 22, 2011)  — The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 8.44 percent of all loans outstanding as of the end of the second quarter of 2011, an increase of 12 basis points from the first quarter of 2011, and a decrease of 141 basis points from one year ago, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 32 basis points to 8.11 percent this quarter from 7.79 percent last quarter.

“While overall mortgage delinquencies increased only slightly between the first and second quarters of this year, it is clear that the downward trend we saw through most of 2010 has stopped.  Mortgage delinquencies are no longer improving and are now showing some signs of worsening,” said Jay Brinkmann, MBA’s Chief Economist. “The good news is the continued decline in long-term delinquencies, those mortgages that are three payments or more past due. The bad news is that drop is offset by an increase in newly delinquent loans one payment past due.”

UPDATED:  Hats off the calculated risk blog.  They keep coming up with great statistics.  For more charts like the one below, check out their updated post.   Although Minnesota isn’t in the worst shape by comparison to other states, we are still in rough shape – approx 8% of first mortgages are either in foreclosure or more than 30 days delinquent.  Staggering.  That is 8% of all first mortgages in Minnesota.  (back to our new real estate motto: Jobs, Jobs, Jobs.)


calculatedrisk blog State delinquency by %





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30 Year Conventional Mortgage rate historical perpective

It seem like we always hear “near record low mortgage rates”, like another “Guitar Center blow out sale”.

This will help put things in a little perspective.  This was just updated 2011-08-11 4:31 PM CDT

30 Year Mortgage Rates 1976-05-07 to 2011-08-11

How much lower do you think they will go?

I am thinking now is a good time…

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