The latest data confirms the strengthening of US mortgage credit quality
The latest data confirms the strengthening of US mortgage credit quality.
A report from the Mortgage Bankers Association shows that the mortgage delinquency rate is at its lowest level since 2000; and Black Knight Financial Services’ figures shows the active foreclosure inventory below 400,000 for the first time in 10 years.
The MBA figures reveal the delinquency rate on 1-to-4-unit properties was down 47 basis points to 4.24% of all loans outstanding at the end of the second quarter of 2017 compared to a year earlier.
Foreclosure actions were started on 0.26% of loans, down 4 basis points from the first quarter of the year and 6 basis points from the second quarter of 2016.
The percentage of loans in the foreclosure process at the end of Q2 was 1.29%, down 10 basis points from the previous quarter and 35 basis points from Q2, 2016.
There was also a drop in the serious delinquent there was also a drop in the serious delinquency rate which was 2.49% in the second quarter, down 27 basis points from Q1 and 62 basis points from Q2 2016.
"In the second quarter of 2017, the overall delinquency rate was at its lowest level since the second quarter of 2000, Marina Walsh, MBA's Vice President of Industry Analysis. “The foreclosure inventory rate was at its lowest level since the first quarter of 2007. In addition, the seriously delinquent rate, which combines loans that are 90 days or more past due with those loans in the process of foreclosure, dropped to a ten-year low.”
Meanwhile, the foreclosure inventory fell by 12,000 in July, taking the total below 400,000 for the first time since February 2007 according to first-look data from Black Knight.
In the past 12 months active foreclosure inventory has declined by 28% that's more than 150,000.
