Another Drop in Delinquency Brings Us to 2007 Levels
The Mortgage Bankers Association as some good news in terms of mortgage delinquency. In the second quarter of 2014 the delinquency rate for one-to-four unit residential mortgages dropped. This represents the fifth quarter in a row that we’ve seen such a drop. This put the seasonally adjusted rate of such loans outstanding at 6.04 percent, which is the lowest rate since the fourth quarter of 2007.
Mortgages in serious delinquency, or loans that are either ninety or more days past due or in foreclosure proceedings, comprised 4.8 percent of total mortgages. This is twenty-four basis points lower than the previous quarter, and one hundred eight basis points below the second quarter of 2013.
Mortgage loans that were in foreclosure proceedings in the second quarter comprised 2.49 percent of all mortgages. This represents a drop of sixteen basis points from the previous quarter, and eighty-four basis points from the same time last year. This brings us to the lowest foreclosure inventory rate since the beginning of 2008, and even states hit hardest by the crisis are enjoying pre-crisis levels of foreclosure inventory.
