The delinquency rate for mortgage loans on Massachusetts residences was 4.49 percent at the end of the third quarter of 2016, a decrease of 14 basis points from the previous quarter, according to the Mortgage Bankers Association (MBA). The delinquency rate excludes loans that have progressed into in the process of foreclosure. The number of Massachusetts loans that began the foreclosure process during Q3 fell 5 basis points to 0.33 percent, while the percentage of loans in the foreclosure process at the end of the quarter fell 9 basis points to 1.88 percent.

These rates are not seasonally adjusted. Mortgage delinquency rates normally rise between the second and third quarters of the year due to a variety of seasonal factors.

The delinquency rate for prime adjustable rate mortgage (ARM) loans decreased 13 basis points to 4.75 percent and the rate for prime fixed-rate mortgage loans decreased 2 basis points to 2.60 percent. The delinquency rate for subprime ARM loans decreased 232 basis points to 17.6 percent, while the rate for subprime fixed-rate loans decreased 100 basis points to 16.26 percent. The delinquency rates for FHA and VA loans were 9.26 percent and 4.09 percent, respectively – up 6 basis points for FHA loans and down 32 basis points for VA loans.

The foreclosure starts rate for prime ARM loans in Massachusetts decreased 8 basis points to 0.31 percent, while the rate for prime fixed-rate loans decreased 6 basis points to 0.11 percent. The foreclosure starts rate for subprime ARM loans increased 79 basis points to 2.65 percent, while the rate for subprime fixed-rate loans increased 7 basis points to 1.85 percent.

The percent of prime ARM loans in foreclosure decreased 4 basis points to 2.28 percent and decreased 4 basis points to 0.82 percent for prime fixed-rate loans. The rate for subprime ARM loans increased 7 basis points to 14.39 percent, while the rate for subprime fixed-rate loans decreased 37 basis points to 10.62 percent. The percentage of FHA loans in foreclosure decreased 14 basis points to 2.52 percent. The percentage of VA loans in foreclosure decreased 29 basis points to 1.50 percent.

Among the 50 states and the District of Columbia, Massachusetts ranked 28 in delinquencies and 22 in foreclosures started. Mississippi ranked first in delinquencies with a rate of 8.68 percent and New Jersey ranked first in foreclosure starts with a rate of 0.65 percent.

Nationally, the delinquency rate for mortgage loans on one- to four-unit residential properties was 4.63 percent on a non-seasonally adjusted basis, down one basis point from 4.64 percent in the second quarter of 2016. The seasonally adjusted delinquency rate on residential properties was 4.52 percent in Q3, down 14 basis points from last quarter’s seasonally adjusted rate. The non-seasonally adjusted percentage of loans on which foreclosure was started during the quarter decreased two basis points to 0.30 percent, while the non-seasonally adjusted percentage of loans in the foreclosure process at the end of the quarter decreased nine basis points to 1.55 percent.