The delinquency rate for mortgage loans on residential properties in Massachusetts was 8.83 percent at the end of the first quarter of 2010, a decrease of 90 basis points, according to the Mortgage Bankers Association.

The delinquency rate excludes loans in the process of foreclosure. The percentage of loans in Massachusetts on which foreclosure was started during the quarter rose 13 basis points to 0.92 percent, while the percentage of loans in the foreclosure process at the end of the quarter rose 2 basis points to 3.41 percent.

Mortgage delinquency rates normally fall between the fourth and first quarter of the year due to a variety of seasonal factors, particularly heating bills and Christmas holiday spending. Many borrowers are behind on their mortgage payments at the end of December but are current by the end of March, according to the MBA.

The delinquency rate for prime adjustable rate mortgage loans decreased 30 basis points to 11.45 percent and the rate for prime fixed rate mortgage loans decreased 56 basis points to 5.7 percent. The delinquency rate for the subprime ARM loans decreased 204 basis points to 33.76 percent, while the rate for subprime fixed rate loans decreased 337 basis points to 28.85 percent.

The delinquency rates for FHA and VA loans were 10.03 percent and 7.89 percent, respectively-down 198 basis points for FHA loans and down 157 basis points for VA loans.

Among the 50 states and the District of Columbia, Massachusetts ranked 20th in delinquencies and 28th in foreclosures started. Nevada ranked first in delinquencies with a rate of 14.03 percent and first in foreclosure starts with a rate of 3.23 percent.

Massachusetts has 15 percent nonprime borrowers (FHA and subprime) versus a national average of 22 percent.

On a national level, the delinquency rate for mortgage loans on one-to-four-unit residential properties was 9.38 percent on a non-seasonally adjusted basis, down 106 basis points from 10.44 percent in the fourth quarter of 2009.