Thursday, February 20, 2014

New mortgage delinquencies hit 8-year low in Colorado during 4th quarter

Serious mortgage delinquencies in Colorado increased slightly from the third quarter to the fourth quarter of 2013, ending eighth quarter in a row of falling 90-day delinquency rates. During the fourth quarter, the 90-day delinquency rate was 1.5 percent in Colorado. The rate was 1.47 percent during the third quarter of 2013. Practically, speaking, however, the 90-day delinquency rate has been flat for the past three quarters. It has also been flat at the national level. The national 90-day delinquency rate was 2.55 percent during the fourth quarter of 2013, and it was 2.57 percent during the third quarter.

The first graph shows the 90-day delinquency rates since 2005:



30-day delinquencies for the fourth quarter of 2013 were at the lowest percentage recorded during any other fourth quarter in 8 years, dropping to 2.12 percent. The rate was 2.21 percent during the 3rd quarter of 2013, and it was 2.18 percent during the fourth quarter of 2012.  A new low in 30-day delinquencies suggests more declines in foreclosure activity in Colorado, at least in the short term.



The foreclosure inventory also fell during the fourth quarter of 2013 in Colorado and has fallen for the past thirteen quarters in a row. Colorado's foreclosure inventory dropped to 0.96 percent during the fourth quarter of 2013, falling from 2012's fourth quarter rate of 1.41 percent. The inventory was also down from 2013's third-quarter rate of 1.08 percent. The third graph shows the foreclosure inventory in Colorado and the US:



National Comparisons:

As can be seen in the first and third graph, Colorado's foreclosure inventory and 90-day delinquency rates are well below the national rates.

The U.S. foreclosure inventory rate was 2.86 percent during the fourth quarter of 2013.

Using the 90-day delinquency rate to compare Colorado to all other states, we find that Colorado had the seventh-lowest delinquency rate in the nation during the fourth quarter of 2013. The only states with lower 90-day delinquency rates were Idaho, 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 0.54 percent, and the highest rate was found in Nevada where it was 3.99 percent.

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