Just one month after the rate of late payments on home loans shot up 36 basis points, delinquency tumbled by more than 60 BPS.
During October, 5.300 million residential loans were past due. The rate reflects mortgages that are at least 30 past-due or in the process of foreclosure.
The number of delinquent mortgages tumbled from September, when 5.640 million loans were categorized as delinquent.
Lender Processing Services Inc., which delivered the data Monday, previously reported that 6.298 million home loans were past-due in October 2011.
LPS determines delinquency based on statistics from its loan-level database that reportedly represents 70 percent of the overall market.
Last month’s delinquency rate worked out to 10.64 percent, declining from 11.27 percent in September — when the rate jumped 36 BPS from August.
A year earlier, the rate was 12.22 percent.
Florida, Mississippi, New Jersey, Nevada and New York had the highest delinquency rates in October.
The most favorable rates were in Montana, Wyoming, South Dakota, Alaska and North Dakota.
October delinquency reflected a 7.03 percent delinquency rate excluding foreclosures, dropping from 7.40 percent in August and 7.93 percent in October 2011.
The foreclosure inventory rate was 3.61 percent, better than 3.87 percent a month earlier and 4.29 percent a year earlier.
