Tuesday, June 17, 2014

Colorado's mortgage delinquency rates fall during 2014's first quarter

Serious mortgage delinquencies in Colorado fell from the fourth quarter of 2013 to the fourth quarter of 2014, dropping to the lowest level recorded since 2008.  During the first quarter, the 90-day delinquency rate was 1.3 percent in Colorado. The rate was 1.5 percent during the fourth quarter of 2013.  The national 90-day delinquency rate was 2.39 percent during the first quarter of 2014, and it was 2.55 percent during the fourth quarter of 2013.

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



30-day delinquencies for the first quarter of 2014 were at a nine-year low for the first quarter, and were at the lowest level recorded in any quarter since 2006. During the first quarter of 2014, 1.71 percent of loans in Colorado were 30-days delinquent.  The rate was 2.12 percent during the 4th quarter of 2013, and it was 2.18 percent during the first quarter of 2013.  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 first quarter of 2014 in Colorado and has fallen for the past fourteen quarters in a row. Colorado's foreclosure inventory dropped to 0.94 percent during the first quarter of 2014, falling from 2013's fourth-quarter rate of 0.96 percent. The inventory was also down from 2013's first-quarter rate of 1.38 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 2.65 percent during the first quarter of 2014.

Using the 90-day delinquency rate to compare Colorado to all other states, we find that Colorado had the sixth-lowest delinquency rate in the nation during the first quarter of 2014. The only states with lower 90-day delinquency rates were 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 0.49 percent, and the highest rate was found in Mississippi where it was 4.2 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.