The delinquency rate of first-lien residential mortgages increased to 8.44 percent of all loans outstanding as of the end of the second quarter of 2011, the Mortgage Bankers Association (MBA) reported Monday.

“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,” Brinkmann said. “Mortgage delinquencies are no longer improving and are now showing some signs of worsening.”

Paul Dales, senior U.S. economist with Capital Economics says the fact that the rise in the delinquency rate came from more homeowners falling behind on their mortgage payments for the first time is “the most worrying” aspect of the report.

“The weaker economy and rebound in the unemployment rate are therefore already taking their toll on the housing market,” Dales said.

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