The number of foreclosed loans in the third quarter of this year has declined by 20 basis points (bps) from the second quarter and 36 bps from one year ago, according to the Mortgage Bankers Association’s National Delinquency Survey. The delinquency rate for one- to four-family homes dropped to 7.4% in the third quarter, 18 bps from the second quarter and 59 bps over Q3 2011.
Foreclosure rates and the foreclosure inventory have been at a consistent decline. The inventory rate has dropped 20 bps to 4.07%, which is 36 bps lower than 12 months ago. Foreclosure starts are at 0.9%, down from 0.96% in Q2 2012 and 1.08% in Q3 2011.
Loans that are seriously delinquent in foreclosure are at a rate of 7.89%, compared to 7.31% in Q2 2012 and 7.89% in the third quarter of last year.
A basis point is a unit that is equal to one-hundredth of a percent and is used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security.