The rate of serious delinquency on residential loans fell more than 40 basis points during March. Past-due payments on the country’s outstanding mortgages have improved more than 90 BPS from a year earlier.
Home loans at least 90 days past due accounted for 6.03 percent of all mortgages as of March 31.
The statistics were outlined in CreditForecast.com. The report is jointly published by Equifax Inc. and Moody’s Analytics Inc.
Serious delinquency tumbled from 6.45 percent one month earlier.
The 90-day rate was also lower than March 2011, when delinquency stood at 6.98 percent.
“The 40-basis point decline for the month is the largest single-month decline since the delinquencies peaked in January 2010, although credit quality remains below its pre-recession level,” the report said. “Equally impressive is the fact that this is true for every delinquency bucket on a dollar and a loan basis. Credit quality has a long way to go in mortgage-related loans, however, and recent data suggest that the recovery will be slow. Negative home equity is the main reason for the slow improvement.”
