Mortgage Late-Pay Rate Sees Lowest Level Since 2008

Mortgage Late-Pay Rate Sees Lowest Level Since 2008Americans are faring better in making mortgage payments as delinquencies of 30 days or more on home loans dipped in the fourth quarter of last year to the lowest level since 2008.
Additionally, the percentage of loans on which foreclosure actions were initiated was down to a six-year low.
The delinquency rate for mortgage loans on residential properties fell to a seasonally adjusted rate of 7.09 percent of all loans outstanding at the end of the fourth quarter, according to a report today by the Mortgage Bankers Association.
That marks a drop of 31 basis points from the previous quarter, and down 49 basis points from one year ago, the MBA said.
Delinquency rates typically increase between the third and fourth quarters of the year. But even the non-seasonally adjusted delinquency rate dropped 13 basis points to 7.51 percent in the fourth, compared to 7.64 percent the previous quarter.
The delinquency rate includes loans that are at least one payment past due, but does not include loans in the process of foreclosure.
The percentage of loans on which foreclosure actions were started during the fourth quarter was 0.70 percent, the lowest level since the second quarter of 2007. That figure is down 20 basis points from last quarter and down 29 basis points from one year ago.
The percentage of loans in the foreclosure process at the end of the fourth quarter was 3.74 percent, the lowest level since the fourth quarter of 2008, and down 33 basis points from the third quarter and 64 basis points lower than one year ago.
“We are seeing large improvements in mortgage performance nationally and in almost every state,” said Jay Brinkmann, MBA’s chief economist and senior vice president of research.
The 30 day delinquency rate decreased 21 basis points to its lowest level since mid-2007.
“With fewer new delinquencies, the foreclosure start rate and foreclosure inventory rates continue to fall and are at their lowest levels since 2007 and 2008 respectively,” Brinkmann said.

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