The number of delinquent home mortgages insured by the Federal Housing Administration has declined for the third consecutive month. The delinquency rate which was 8.5 percent in April is still high. However the rate was down from 9.4 percent in January.
According to David Stevens, the FHA’s commissioner, they are not declaring victory by any stretch. “There’s plenty of room for caution,” he added. The FHA was unwilling to applaud this as good news.
But outside analysts were more positive. “It’s a very important trend to the extent that we’re not continuing to get worse,” says Thomas Lawler, an independent housing economist in Leesburg, Va.