Serious residential loan delinquency has improved every month this year. Late payments on first mortgages have fallen back to where they stood five years ago, while the rate on second mortgages stands lower than at any other point during the past eight years.
First-mortgage delinquency of at least 90 days was 1.41 percent in June.
Serious delinquency was down for the sixth month in a row and 9 basis points better than May, when the rate fell 26 BPS from April. Delinquency is now back at May 2007 levels.
The S&P/Experian Consumer Credit Default Indices indicated that the 90-day first-mortgage rate was 2.02 percent in June 2011.
The indices are determined using Experian’s consumer credit database of $11 trillion in outstanding loans sourced from 11,500 lenders.
Second-mortgage 90-day delinquency fell to an eight-year low of 0.73 percent in June from 0.88 percent a month earlier and 1.40 percent a year earlier.
The composite index, which also reflects delinquency on bank cards and auto loans, fell to 1.52 percent from 1.62 percent in May and 2.14 percent in June 2011.
Among the five-biggest metropolitan statistical areas, Miami’s 2.44 percent rate was worse than any other MSA in June but far better than the 5.41 percent rate for the area a year prior.
At just 0.87 percent, Dallas had the lowest rate last month.