Foreclosure Rates and Mortgage Delinquency Fall Sharply in 2012 as Mortgage Rates Make Record Lows

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Low rates have helped the housing market recover and another positive sign that we're nearing the end of the worst housing bust since the Great Depression is a sharp decline in foreclosure rates and mortgage delinquency. Mortgage rates made a series of record lows in 2012 and are just above record lows in 2013. Average 30 year conforming mortgage rates today are at 3.56 percent, down sharply from last week's average 30 year mortgage rate of 3.68 percent.

Foreclosure Rates and Mortgage Delinquency Fall Sharply in 2012 as Mortgage Rates Make Record LowsIn the National Delinquency Survey, released by the Mortgage Bankers Association, the delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 7.09 percent of all loans outstanding at the end of the fourth quarter of 2012. This is the lowest rate since 2008, a decrease of 31 basis points from the previous quarter, and down 49 basis points from one year ago.

This is the largest decline ever in the MBA survey and is now half the peak rate back in 2009. There are several factors for the decline but the biggest factor is the number of foreclosure starts in the state of Florida. Currently, 12 percent of the mortgages in Florida are in the process of foreclosure, down from a peak of 14.5 percent last year but still contribute to a largest overall number of foreclosure starts.

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Loan Amt Points FICO % Down
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Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click here for more information on rates and product details.

Current mortgage rates on 15 year conforming loans also made all-time record lows in 2012. The lowest national average 15 year rate was at 2.66 percent set back in November 2012. Today's mortgage rates on 15 year conforming loans are just above record lows at 2.86 percent. These rates are just national average rates, the lowest 15 year conforming refinance rates I saw on our rate tables were at 2.25 percent. The lowest refinance rates today in our database are still at 2.25 percent with less than 2 mortgage points.

Average jumbo mortgage rates on both 30 year and 15 year loans are lower this week. 30 year jumbo mortgage rates today are averaging 4.04 percent, a decline from last week's average 30 year rate of 4.13 percent. Average 15 year jumbo interest rates are at 3.39 percent, down from last week's average of 3.47 percent.

The lowest 30 year jumbo refinance rates right now in our rate database for the state of California are at 3.375 percent with zero mortgage points. The lowest current refinance rates for 15 year jumbo loans in our California database are at 2.625 percent with no mortgage points. You can search for rates in your state for all types of mortgage loans by using our rate database.

Author: Brian McKay
February 28th, 2013