Mortgage Paper Quality Turns Corner

The always insightful Thomas Brown notes that the delinquency rate for mortgages is going down.

See how newer delinquencies, especially 30-to-60 day and 61-to-90 day, are lower now than they were last October? That’s a big deal: new delinquencies are falling, regardless of what’s gone on with total delinquencies. Once the later-stage delinquencies drop out of the total, the overall delinquency numbers will fall, and everyone will start to see what we know now, that subprime credit quality has indeed turned the corner.