Fewer homeowners in the US were late on their home loan payments in Q3, according to a report by the Mortgage Bankers Association (MBA).
The seasonally-adjusted delinquency rate for all mortgages dropped to 7.40 percent in Q3 compared to 7.58 percent in Q2. It was also significantly lower than the 7.99 percent a year ago. The data includes loans that were not yet in the foreclosure process but were at least one payment late.
The lower delinquency rate is attributed to an improvement in the number of borrowers who were 90 days or more behind on their loan repayments, which fell to 2.96 percent from 3.19 percent – the lowest level since 2008.
At the same time, the serious delinquency rate or percentage of mortgages that are 90 days or more past due or in foreclosure, slipped to 7.03 percent from 7.31 percent – significantly lower than last year’s 7.89 percent.
However, the number of loans that were 30 days past due rose to 3.25 percent in Q3 from 3.18 percent in Q2 and 3.19 percent last year.
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