Mortgage Delinquency Rates Take a Q3 Dive

The delinquency rate for mortgages on one-to-four-unit residential properties fell by 14 basis points (bps) to a seasonally adjusted rate of 4.52 percent of all loans outstanding at the end of the third quarter, according to the latest Mortgage Bankers Association (MBA) National Delinquency Survey. The third quarter’s level, which was the lowest level since the 4.39 percent level in the second quarter of 2006, was 47 bps lower on a year-over-year measurement.

The percentage of loans on which foreclosure actions were started during the third quarter was 0.30 percent, a two bps drop from the previous quarter and an eight bps drop from one year ago. This foreclosure starts rate was at its lowest level since the second quarter of 2000.  

The serious delinquency rate—covering loans that are 90 days or more past due or in the process of foreclosure—was 2.96 percent, down 15 bps from previous quarter and a 61 bps plummet from last year. The serious delinquency rate was at its lowest level since the third quarter of 2007.

“The delinquency rate has decreased in almost every quarter since the beginning of 2013 and is below its historical average of 5.36 percent for the period from 1979 to the present,” said

Marina Walsh, MBA’s vice president of industry analysis. “Additionally, the 30-day delinquency rate decreased three basis points to 2.33 percent and the 60-day delinquency rate decreased four basis points to 0.77 percent from the previous quarter. Combined, the 30-day and 60-day delinquency rate was at its lowest level in the history of the survey dating back to 1979.”