Housing Market

Delinquencies, foreclosures drop in fourth quarter to pre-crisis levels

MortgageData released last week by the Mortgage Bankers Association showed mortgage delinquency and foreclosure rates fell in the fourth quarter of 2013 to reach pre-crisis levels.

“We continue to see substantial improvement in both delinquency and foreclosure rates, with most measures now back to pre-crisis levels,” MBA Chief Economist and Senior Vice President of Research and Industry Technology Michael Fratantoni said.

According to the MBA National Delinquency Survey, the delinquency rate, which includes loans that are at least one payment past due, on residential mortgages fell to 6.4 percent at the end of the fourth quarter.

Fratantoni said the Baltimore-Townson metro area in Maryland posted the highest 90+ day delinquency rate at 3.87 percent, while the Minneapolis-St. Paul metro area had the lowest at 1.43 percent.

The foreclosure rate for residential mortgages also declined to reach 2.86 percent at the end of the fourth quarter—the lowest inventory rate seen since 2008.

“There was a broad improvement in foreclosure rates in the fourth quarter, with 49 states and the District of Columbia recording a decrease,” Fratantoni said.

Florida posted the highest percentage of loans in foreclosure, though the rate has fallen to 8.56 percent from a 14.5 percent peak.

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