The delinquency rate for mortgage loans on one-to-four-unit residential properties decreased to a seasonally adjusted rate of 5.68 per cent of all loans outstanding at the end of 4Q 2014, according to the Mortgage Bankers Association Wednesday.
The delinquency rate for mortgage loans was the lowest level since 3Q 2007. The delinquency rate decreased 17 basis points from the previous quarter, and 71 basis points from one year ago
The percentage of loans in the foreclosure process at the end of 4Q was 2.27 per cent, down 12 basis points from 3Q and 59 basis points lower than the same quarter one year ago. This was the lowest foreclosure inventory rate seen since 4Q 2007.
The per cent of loans in the foreclosure process also peaked in 2010 and and is about two-thirds of the way back to normal.
US Mortgage Delinquency and Foreclosure Rates: 4Q 2014
It has taken about four years to reduce the backlog of seriously delinquent and in-foreclosure loans by two-thirds, so a rough guess is that serious delinquencies and foreclosure inventory will be back to normal in a couple more years.
Marina Walsh, MBA’s Vice President of Industry Analysis said, “We are now back to pre-crisis levels for most measures. The foreclosure inventory rate has decreased every quarter since 2Q 2012, and is now at the lowest level since 4Q 2007. Foreclosure starts ticked up two basis points, after being flat last quarter, largely due to state-level fluctuations in the speed of the foreclosure process. Compared to the same quarter last year, foreclosure starts are down eight basis points.