Friday, March 1, 2013

Mortgage delinquencies down again in Colorado during 4th quarter 2012


30-day delinquencies during the fourth quarter of 2012 were down from the fourth quarter of 2011.   According to the National Delinquency Survey, released last week by the Mortgage Bankers Association, Colorado's 30-day delinquency rate fell from 2.44 percent during the fourth quarter of 2011 to 2.18 percent during the fourth quarter of 2012. The fourth-quarter 30-day delinquency rate was the lowest fourth-quarter 30-day delinquency rate recorded in seven years.

The first graph shows 30-day delinquencies by quarter in Colorado since 2006. The 30-day delinquency rate for the fourth quarter decreased from the third quarter's delinquency rate of 2.44 percent.


The number of loans that were 90 days delinquent of more were also down in Colorado, falling to 1.73 percent of all loans surveyed during the fourth quarter. The 90-day delinquency rate during the fourth quarter of 2011 was 2.1 percent, and it was 1.76 percent during the third quarter of 2012. The second graph shows the percentage of mortgage loans that were at least 90 days delinquent in recent years. The 90-day delinquency rate has been falling consistently since the fourth quarter of 2009.



The foreclosure inventory also fell during the fourth quarter and has fallen for the eight quarters in a row. Colorado's foreclosure inventory dropped to 1.41 percent during the fourth quarter of 2012, falling from 2011's fourth quarter rate of 2.01 percent. The inventory was also down from 2012's third-quarter rate of 1.66 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 fourth quarter of 2012 was 3.04 percent, and it was 3.35 percent during the fourth quarter of 2011.

The U.S. foreclosure inventory rate was 3.74 percent during the fourth quarter of 2012 and it was 4.38 percent during the fourth quarter of 2011.

Although not pictured, the 30-day delinquency rate in Colorado is also below the national rate. The national 30-day delinquency rate during the fourth quarter was 3.21 percent, and it was 3.43 percent during the fourth quarter of 2011.

Using the 90-day delinquency rate to compare Colorado to all other states, we find that Colorado had the ninth-lowest delinquency rate in the nation during the fourth quarter of 2012. The only states with lower 90-day delinquency rates were Vermont, Iowa, Minnesota, 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 0.67 percent, and the highest rate was found in Nevada where it was 5.46 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.