The mortgage delinquency rate for loans on one- to four-unit residential properties fell to a seasonally adjusted rate of 6.04% of all outstanding loans at the end of the second quarter, according to data released by the Mortgage Bankers Association. That’s down seven basis points from the previous quarter and 92 basis points from a year ago.
The serious delinquency rate – the percentage of loans 90 days or more past due – was also down, falling 24 basis points from Q1 to 4.8% in the second quarter. As in the previous quarter, 75% of seriously delinquent loans were originated in 2007 or earlier, according to the MBA.
“Delinquency and foreclosure rates fell to their lowest levels in more than six years, and the rate of new foreclosure starts is at its lowest level since 2006,” said Mike Fratantoni, MBA’s chief economist. “Strong job growth and continued increases in home prices in most markets have been the main contributors to these steady improvements in mortgage performance. We have returned to more typical seasonal patterns with respect to mortgage delinquency, with 30-day and 60-day delinquency rates increasing from the first to the second quarter on an unadjusted basis. Adjusting for the seasonal pattern, we estimate that delinquencies were down for the quarter, and are down almost a full percentage point from last year.”
Mortgage delinquencies were down for the fifth straight quarter in Q2, reaching their lowest level since the fourth quarter of 2007.