Quarterly delinquency rates hit their second lowest rate since 2007-2008's real estate meltdown, according to the Mortgage Bankers Association.
Delinquencies dropped to a seasonally adjusted rate of 5.54%, 57 basis points below last year's first quarter and 14 points below 2014's fourth quarter. Foreclosures remained stable from last year, however, at 0.45% of loans.
The serious delinquency rate, which the MBA defines as loans over 90 days past due, decreased 80 basis points year-over-year and 28 basis points from the previous quarter.
"Delinquency rates and the percentage of loans in foreclosure continued to fall in the first quarter and are now at their lowest levels since 2007," said Joel Kan, the MBA's associate vice president of industry surveys and forecasting, in a release accompanying the figures.
"The job market continues to grow, and this is the most important fundamental improving mortgage performance. Additionally, home prices continued to rise, as did the pace of sales, thus increasing equity levels and enabling struggling borrowers to sell if needed."
The legacy of poor underwriting prior to 2008 continues to haunt the mortgage industry. According to Kan, 73% of delinquent or foreclosed mortgages were originated before 2007.
