After surging in September, delinquency on home loans turned lower. Early stage delinquency led the month-over-month decline, and the foreclosure rate drove a year-over-year improvement.
The rate of residential delinquency, including mortgages past due at least 30 days and the pre-sale foreclosure inventory, landed at 8.82 percent in October, Lenders Processing Services Inc. reported Friday.
Delinquency retreated from the previous month, when the rate was up 23 basis points to 9.09 percent.
The improvement in loan performance was even greater compared to the same month last year, when the rate was 10.64 percent.
Mississippi had the highest delinquency rate last month, displacing Florida, which came in at No. 2. After that was New Jersey, New York and Louisiana.
The lowest delinquency rates were in Colorado, Montana, South Dakota, Alaska and North Dakota.
October's U.S. rate reflected a 30-day rate, excluding foreclosures, of 6.28 percent, declining from 6.46 percent in September and 7.03 percent in October 2012.
The foreclosure pre-sale inventory rate dropped to 2.54 percent from 2.63 percent a month earlier and 3.61 percent a year earlier.
By loan count, 3,152,000 loans were past due at least 30 days, and another 1,276,000 loans were in the foreclosure pre-sale inventory.