Both the rate of delinquency and the rate of foreclosures have retreated to the lowest levels since prior to the onset of the financial crisis.
Including the foreclosure inventory, residential loan delinquency of at least 30 days finished June at 8.53 percent.
Total delinquency improved from the first quarter, when the 30-day rate was 8.76 percent.
Loan performance has made an even bigger improvement from mid-year 2013, when 30-day delinquency stood at 10.29 percent.
The Mortgage Bankers Association reported the home loan performance metrics Thursday in its National Delinquency Survey.
“Strong job growth and continued increases in home prices in most markets have been the main contributors to these steady improvements in mortgage performance.” MBA Chief Economist Mike Fratantoni said in the report.
On prime mortgages, total delinquency fell to 5.07 percent from 5.22 percent and was also down from 6.45 percent as of June 30, 2013.
Subprime delinquency improved to 29.05 percent from 29.80 percent three months earlier and 33.87 percent 12 months earlier.
The 30-day rate on loans insured by the Federal Housing Administration dropped 34 BPS to 12.48 percent. In the year-earlier report, FHA delinquency was 14.71 percent.
A 28-basis-point improvement left delinquency on loans guaranteed by the Department of Veterans Affairs at 6.81 percent. A 121-basis-point year-over-year decline was reported for VA loans.
The U.S. total second-quarter 2014 rate included a seasonally adjusted 30-day rate, excluding foreclosures, of 6.04 percent, falling 7 basis points from March 31 and 92 BPS better than as of June 30, 2013.
It was the fifth consecutive quarter-over-quarter improvement and the lowest rate since the fourth-quarter 2007.
Delinquency in Mississippi was 10.53 percent, higher than in any other state. Alabama had the second-highest rate: 8.39 percent. After that was 8.13 percent in Louisiana, 7.80 percent in Georgia and 7.68 percent in Indiana.
The rate of past-due payments was lowest in North Dakota at 2.34 percent.
Also factored into the total U.S. rate was a non-seasonally adjusted 2.49 percent foreclosure inventory rate — the lowest rate since the first-quarter 2008. The foreclosure rate dropped 16 BPS from three months earlier and was 84 BPS less than a year earlier.
“The declining trend in later stage delinquencies and foreclosure measures is clearly continuing at the national level,” MBA Director of Economic Forecasting Joel Kan said. “Some states hardest hit by the crisis, for example California and Arizona, now have foreclosure inventory rates that are both back to pre-crisis levels and less than half the current national rate.”
The latest foreclosure rate was highest in New Jersey at 8.10 percent. Florida’s 6.91 percent followed, then New York’s 5.89 percent, Maine’s 4.51 percent and Connecticut’s 3.96 percent.
Wyoming’s 0.52 percent foreclosure rate was the lowest in the nation.
