Delinquencies on Mortgages Hit 20-Year Low : Finances: Sharply lower interest rates that sparked refinancings in the fourth quarter of ’92 are cited by Mortgage Bankers Assn.

The number of homeowners delinquent in making their mortgage payments fell to the lowest level in nearly 20 years during the fourth quarter of 1992, a trade association said Wednesday.

The Mortgage Bankers Assn. said the low level of late payments reflected sharply lower interest rates that have sparked an almost unprecedented refinancing of loans.

“This is a very encouraging sign,” MBA President Herbert Tasker said. “It seems clear that the decline in interest rates is helping homeowners meet their mortgage obligations.”

Specifically, the association said the seasonally adjusted delinquency rate for mortgage loans on one- to four-unit residential properties was 4.24% in the fourth quarter, down from 4.6% in the third quarter.

That compared to a delinquency rate of more than 6% in the worst years for mortgage repayments in the 1980s.

On a year-to-year basis, all regions of the country experienced declines in delinquency rates in the quarter from the 4.85% recorded in the fourth quarter of 1991.

Homeowners have flooded mortgage lenders with requests for refinancing as interest rates have fallen to historic lows.

Tasker said he is hopeful that interest rates might drop even further, increasing the likelihood that delinquencies will continue to decline.

“Interest rates might possibly, one more time, nudge down,” he said.

The association, however, said actual home foreclosures during the final three months of last year showed a mixed picture.

Foreclosures initiated during the period were up slightly, while those in the foreclosure process declined.

Association officials said the group generally endorses President Clinton’s economic plan but hopes that the Administration will act to get banks to increase lending to small businesses, including home builders.