The delinquency rate for mortgage loans on residential properties in Massachusetts was 6.81 percent at the end of the fourth quarter of 2014, a decrease of 19 basis points from the third quarter of 2014, according to the Mortgage Bankers Association (MBA). The delinquency rate excludes loans in the process of foreclosure.
Nationally, the delinquency rate for mortgage loans on one- to four-unit residential properties decreased to a seasonally adjusted rate of 5.68 percent of all loans outstanding at the end of the fourth quarter of 2014. This was the lowest level since the third quarter of 2007. The delinquency rate decreased 17 basis points from the previous quarter, and 71 basis points from one year ago, according to the MBA’s National Delinquency Survey,
The delinquency rate includes loans that are at least one payment past due but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the fourth quarter was 2.27 percent, down 12 basis points from the third quarter and 59 basis points lower than the same quarter one year ago. This was the lowest foreclosure inventory rate seen since the fourth quarter of 2007.
In Massachusetts, the percentage of loans on which foreclosure was started during the quarter rose 11 basis points to 0.37 percent, while the percentage of loans in the foreclosure process at the end of the quarter rose 13 basis points to 2.05 percent. However, the Massachusetts rates were not seasonally adjusted. Mortgage delinquency rates normally rise between the third and fourth quarters of the year due to a variety of seasonal factors.
The delinquency rate for prime adjustable rate mortgage (ARM) loans in the Bay State decreased 24 basis points to 6.27 percent and the rate for prime fixed rate mortgage loans decreased 7 basis points to 3.76 percent. The delinquency rate for the subprime ARM loans decreased 192 basis points to 26.23 percent, while the rate for subprime fixed rate loans decreased 117 basis points to 27.24 percent. The delinquency rates for FHA and VA loans were 11.73 percent and 5.98 percent, respectively-up 9 basis points for FHA loans and down 10 basis points for VA loans.
The foreclosure starts rate for prime ARM loans in Massachusetts increased 9 basis points to 0.36 percent, while the rate for prime fixed rate loans increased 6 basis points to 0.18 percent. The foreclosure starts rate for subprime ARM loans increased 56 basis points to 2.46 percent, while the rate for subprime fixed rate loans increased 75 basis points to 1.79 percent.
