Figure 33. Rate of serious delinquency on residential mortgages, by type of mortgage and type of interest rate, 2000-09.
Data are plotted as curves. The rate of serious delinquency on fixed-rate subprime residential mortgages starts in October 2000 at about 6.0 percent, rises on balance to about 8.7 percent in early 2002, declines on balance to about 5.5 percent by mid-2004, and remains in that range through March 2007; it then climbs to about 8 percent by year-end 2007 and to nearly 14 percent by the end of January 2009. The rate of serious delinquency on variable-rate subprime residential mortgages starts in October 2000 at about 8.5 percent and increases on balance to about 10.5 percent in early 2002 before declining on balance to 5.5 percent in early 2005. The rate moves up significantly over the next two years to about 12 percent in early 2007. It levels off briefly, and then begins a steep, steady climb, to about 20 percent by year-end 2007 and about 38 percent by the end of January 2009. The rate of serious delinquency on fixed-rate prime residential mortgages starts at just under 1 percent in October 2000, and remains within the range of 0.8 percent to1.2 percent until the beginning of 2008, at which point it begins to climb slowly to about 4 percent by the end of January 2009. The rate of serious delinquency on variable-rate prime residential mortgages starts at around 1.5 percent in October 2000, remains within a range of about 0.5 percent to 2 percent until the beginning of 2007 when it begins to climb appreciably to about 10 percent by the end of January 2009.
NOTE: The data are monthly and extend through January 2009. Seriously delinquent loans are 90 days or more past due or in foreclosure. The prime mortgage data are representative of all residential mortgages, not just those held by commercial banks. The subprime mortgage data cover only securitized loans.
SOURCE: For prime mortgages, McDash Analytics; for subprime mortgages, LoanPerformance, a division of First American CoreLogic.
