Thursday, August 9, 2012

30-day mortgage delinquencies in Colorado hit four-year low, foreclosure inventory falls

30-day delinquencies fell to a four-year low in Colorado during the second quarter, dropping to 2.38 percent of loans surveyed during the second quarter. According to the National Delinquency Survey, released today by the Mortgage Bankers Association, Colorado's 30-day delinquency rate fell from the second quarter of 2011 when the 30-day rate was 2.59 percent. 30-day delinquencies are now at the lowest second-quarter rate reported since 2008.

The first graph shows 30-day delqineuncies by quarter in Colorado since 2006. The 30-day delinquency rate increased from the first quarter's delinquency rate of 2.03 percent, although 30-day delinquencies usually increase form the frist quarter to the second due to seasonal factors.


The number of loans that were 90 days delinquent of more were also down in Colorado, falling to 1.87 percent of all loans surveyed. The 90-day delinquency rate during the second quarter of last year was 2.1 perfent, and it was 1.96 percent during the first quarter of this year. The second graph shows the percentage of mortgage loans that were at least 90 days delinquent during the second quarter. The 90-day delinquency rate has been falling consistently since the fourth quarter of 2009.


The foreclosure inventory also fell during the second quarter and has fallen for the past seven quarters in a row. Colorado's foreclosure inventory dropped to 1.9 percent during the second quarter of this year, falling form last year's second quarter rate of 2.14 percent. The inventory was also down from this year's first quarter rate of 1.95 percent. The third graph shows the foreclosure inventory in Colorado:


National Comparisons:

As can be seen in the second and third graphs, Colorado's foreclosure inventory and 90-day delinquency rates are well below the national rates. The U.S. 90-day delinquency rate during the second quarter of this year was 3.04 percent, and it was 3.42 percent during the second quarter of last year.

The U.S. foreclosure inventory rate was 4.27 percent during the second quarter of this year and it was 4.43 percent during the second quarter of last year.

Although not pictured, the 30-day delinquency rate in Colorado is also below the national rate. The national 30-day delinquency rate during the second quarter was 3.14 percent, and it was 3.39 percent during the second quarter of last year.

Using the 90-day delinquency rate to compare Colorado to all other states, we find that Colorado had the 10th lowest delinquency rate in the nation during the second quarter of 2012. The only states with lower 90-day delinquency rates were Vermont, Iowa, Missouri, Nebraska, North Dakota, South Dakota, Montana, Wyoming and Alaska. The lowest 90-day delinquency rate in the nation was found in North Dakota where it was 0.66 percent, and the highest rate was found in New Jersey where it was 5.04 percent.

Delinquencies are measured by the MBA via surveys sent to major loans servicers. The MBA estimates it covers 88 percent of all first-lien residential mortgage loans outstanding in the US with the survey.