The delinquency rate for mortgages on residential properties during the second quarter dropped to the lowest level since the second quarter of 2006, the Mortgage Bankers Association reported.
The rate fell 11 basis points from the first quarter and 64 basis points year-over-year to a seasonally adjusted rate of 4.66% of outstanding loans, the MBA said Thursday. The delinquency rate for FHA loans dropped 55 basis points from last year to 8.46%, its lowest level since 2000.
The delinquency rate for conventional loans was 3.86% in the second quarter, while the rate for VA loans was 4.31%.
Similarly, just 0.32% of loans had foreclosure actions started during the quarter, down 8 basis points from last year for the lowest level since the second quarter of 2000.
The MBA also found that 1.64% of loans were in the foreclosure process, a decrease of 10 basis points from the previous quarter and 45 basis points from a year ago. The seriously delinquent rate, which measures the share of loans that are 90 or more days past due, dropped 84 basis points year-over-year to 3.11%.
"Mortgage performance improved again in the second quarter primarily because of the combination of lower unemployment, strong job growth, and a continued nationwide housing market recovery," said Marina Walsh, MBA vice president of industry analysis, in a news release.
