The level of foreclosures and mortgage delinquencies fell during the third quarter, according to mortgage data from the Mortgage Bankers Association.
Overall, foreclosures and delinquencies totaled 11.71 percent during the previous three months, which was a slight increase from the second quarter's figure. However, the mortgage records from the National Delinquency Survey showed that it was more than 90 basis points lower than the same period in 2011.
Delinquencies for residential homes fell to a rate of 7.4 percent last quarter, which was 18 basis points lower than the previous quarter, as well as nearly 60 basis points lower than the same quarter last year, the report explained. The rate of loans delinquent by at least one payment dropped to 0.9 percent, which was six basis points lower than the previous quarter's figure, as well as close to 20 basis points from a year earlier.
Loans in foreclosure totaled slightly more than 4 percent during the third quarter, 36 basis points less than one year ago, as well as 20 basis points from the previous quarter, according to the report. Mortgages considered seriously delinquent also dropped, as the total was approximately 7 percent. This was close to 30 basis points less than the previous quarter, as well as 86 basis points lower than the third quarter's figures.
"Mortgage delinquencies decreased compared to last quarter overall, driven mainly by a decline in loans that are 90 days or more delinquent," said Mike Fratantoni, vice president of research and economics for MBA. "The 90 day delinquency rate is at its lowest level since 2008, and together with the decline in the percentage of loans in foreclosure, this indicates a significant drop in the shadow inventory of distressed loans-a real positive for the housing market."
Home prices continue rise in August
Not only are many consumers tackling mortgage payments, but prospective buyers may have more reason to acquire property. Real estate records from Standard & Poor's and Case-Shiller showed home prices improved in August.
The Home Price Indices showed the 10-City Composite rose 0.9 percent during the month compared to July's figures. When examining annual returns, the composite rose 1.3 percent. Additionally, the 20-City Composite rose by the same amount, while the annual return was 2 percent. Both annual return figures were increases from July.