For the second month in a row, mortgages considered seriously delinquent accounted for a bigger share of the U.S. portfolio. Junior lien performance additionally worsened from a year earlier. Among big cities, Dallas saw the most deterioration.
On first mortgages, the rate of loans that were at least 90 days past due was 1.30 percent in October, according to the S&P/Experian Credit Default Indices.
Ninety-day delinquency deteriorated from the previous month, when the rate was 1.28 percent and was 5 basis points worse than in August.
But loan performance has improved from a year earlier, when the rate of serious delinquency was 1.47 percent.
Moving on to late payments on second mortgages, the 90-day rate climbed to 0.72 percent from 0.69 percent in September.
However, unlike first mortgage delinquency — which experienced a year-over-year improvement — serious delinquency on second mortgages rose from 0.65 percent in October 2012.
The composite index, which additionally factors in performance on bank cards and auto loans, was unchanged last month from the previous month at 1.38 percent. Compared to the same month last year, 90-day composite delinquency has fallen 17 basis points.
Among the five-biggest metropolitan statistical areas, Miami’s 2.11 percent composite 90-day rate was highest and unchanged from September.
The composite rate in Dallas surged 12 BPS to 1.35 percent in October– the only increase among the top five MSAs.
Los Angeles’ composite rate was 1.25 percent, down 13 BPS from the previous month — the best improvement among the five MSAs.
