MBA Chart of the Week: Oil States vs. U.S. Average–2015 Foreclosure Starts Rate
Mortgage performance is closely connected to local job market and economic health. According to the Mortgage Bankers Association’s National Delinquency Survey, there were increases in the foreclosure starts rate during fourth quarter 2015 in a handful of states that have economies closely tied to the oil industry. In our January 22 chart, we noted that employment trends in each of these states were running below the national average during 2015.
Recent data also show four of the five states (with the exception of Colorado) were ranked among the 10 weakest states in terms of second quarter real GDP growth. Oklahoma’s economy in particular contracted by 2.4 percent in the second quarter (the latest quarter for which state data are available). It also suffered the largest increase in foreclosures starts during the fourth quarter according to the NDS, increasing by 13 basis points.
To view the Chart of the Week, click https://www.mba.org/news-research-and-resources/forecasts-data-and-reports/forecasts-and-commentary/chart-of-the-week.
(Marina Walsh is vice president of industry benchmarking and research with MBA; she can be reached at mwalsh@mba.org. Lynn Fisher is vice president of research and economics with MBA; she can be reached at lfisher@mba.org. Joel Kan associate vice president of economic forecasting with MBA; he can be reached at jkan@mortgagebankers.org.)
