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Delinquencies lowest since 2008

By Polyana da Costa · Bankrate.com
Thursday, August 8, 2013
Posted: 5 pm ET

The rate of delinquent mortgages in the U.S. fell to the lowest level since mid-2008, according to the Mortgage Bankers Association national delinquency survey.

About 1 in 14 home loans in the U.S. was at least one payment past due in the second quarter of the year, according to the survey. Last year, when the delinquency rate was 7.58 percent, about 1 in 13 homes had a delinquent mortgage.

Foreclosures fall, too

These numbers don’t include homes that are in foreclosure. But the percentage of loans that are in the process of foreclosure also decreased, and the share of new foreclosure filings during the second quarter reached the lowest level since early 2007.

One in 30 homes with a mortgage in the U.S. was in the process of foreclosure in the second quarter, according to the survey.

Florida still No. 1

Florida remains the state with the highest percentage of foreclosures in the nation.

"In Florida, 1 out of 10 loans is still in foreclosure," says Jay Brinkmann, MBA's chief economist. "It's still way too high but way down from the peak." Two years ago, about 1 in 6 home loans in Florida were in foreclosure.

Florida, New York and New Jersey had the highest rate of new foreclosures in the second quarter of the year, the survey shows.

"The rate of new foreclosures in New York hit an all-time high during the second quarter and is now essentially equal with Florida," Brinkmann says. "The percentage of loans in foreclosure in New Jersey remains about the same as the rates in California, Arizona and Nevada combined.  The foreclosure percentages in Connecticut are back to near-all-time highs for that state."

Still, the latest report shows significant improvements in the housing market for most of the country, as delinquency and foreclosure rates return to "normal" historical levels, he says.

What do you think? Has the number of foreclosures in your area declined?

Follow me on Twitter @Polyanad.

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