With the mortgage crisis improving, both the mortgage delinquency rate and the foreclosure rate declined in the third quarter, according to the Mortgage Banker's Association.
MBA's National Delinquency Survey showed the delinquency rate declined to 7.4 percent, and 18 basis point drop from the second quarter and 59 basis point year-over-year decrease.
Additionally, the percentage of loans with foreclosure actions started was 0.9 percent, a six basis point decline from the previous quarter and 18 basis point fall from a year ago.
"Mortgage delinquencies decreased compared to last quarter overall, driven mainly by a decline in loans that are 90 days or more delinquent," observed Mike Fratantoni, MBA’s vice president of research and economics.
According to Bloomberg, factors that contributed to more borrowers being able to make their mortgage payments on time included an improving employment situation and the Home Affordable Refinance Program.
HARP has allowed borrowers with little equity in their homes to refinance their loans at today's record low rates to help make their monthly payments more affordable.