According to LPS’s just-released May “First Look Mortgage Report,” the number of delinquent loans in the U.S. fell about 15% from 2011, while the number in foreclosure fell 6%.
While some of that decline is because there are fewer loans out there to be delinquent, in general this is Yet Another Good Sign.
What, you want numbers? Fine.
- 644,000 fewer mortgages were delinquent in May 2012 compared to May 2011.
- Percentage-wise, 7.2% of loans were delinquent, down from 7.96% last May.
- There were 137,000 fewer loans in foreclosure in May 2012 compared to May 2011.
- Percentage-wide, 4.12% of loans were in foreclosure, up from 4.11% last May.
A “normal” rate of delinquency (i.e., before the whole bubble thing) is about 4.5% to 5%, according to Calculated Risk, so delinquencies are still well above normal, but dropping; the peak was about 11%.