The seasonally adjusted delinquency rate for mortgage loans on one-to-four-unit residential properties fell to 7.99% in the third quarter, according to data from the Mortgage Bankers Association's (MBA) National Delinquency Survey. This is the lowest level recorded since the fourth quarter of 2008.
The third-quarter seasonally adjusted rate is a decrease of 45 basis points (bps) from the second quarter and a decrease of 114 bps from one year ago. The non-seasonally adjusted delinquency rate increased 9 bps to 8.20% this quarter, slightly up from 8.11% last quarter.
The percentage of loans on which foreclosure actions were started during the third quarter was 1.08%, up 12 bps from last quarter and down 26 bps from one year ago. The percentage of loans in the foreclosure process at the end of the third quarter was 4.43%, unchanged from the second quarter and 4 bps higher than one year ago.
The serious delinquency rate – the percentage of loans that are 90 days or more past due or in the process of foreclosure – was 7.89%, an increase of 4 bps from last quarter and a decrease of 81 bps from the third quarter of last year.
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The combined percentage of loans at least one payment past due or in foreclosure was 12.63% on a non-seasonally adjusted basis, a 9 bps increase from last quarter, but 115 basis points lower than a year ago.