The average interest rate on a mortgage is about a full percentage point below what is was a year ago.
Though mortgage interest rates are at record lows, that’s not much help to those with less than stellar credit.
As a result of the housing crash and mortgage disaster, banks became much more strict about who they would lend money to. The free market reacted rapidly to the 2007 subprime crisis and subprime mortgage loans almost disappeared.
As only the best qualified borrowers are now getting mortgages, their payments are overwhelmingly coming in on time and such borrowers are rarely in mortgage default.
The rapid response of the free market to the housing crash is in dramatic contrast to the lumbering movements of the federal government as it slowly and erratically extricates itself from the housing crash it created.
As only good borrowers get loans, the mortgage delinquency rate will keep falling through 2011 and beyond. The current rate, however, is more than three times the rate prior to 2007.
A report out Thursday from foreclosure listing firm RealtyTrac showed that Nevada lead the nation in foreclosures in July, with one in every 115 households receiving a foreclosure notice. California and Arizona were second and third in foreclosures for the month, with Florida sixth. Such notices are sent out after a homeowner falls several months behind on their payments.
TransUnion said the state with the lowest delinquency rate remained North Dakota at 1.45%. South Dakota at 2.31%, Nebraska at 2.43% and Alaska at 2.64% round out the states least likely to have late payments.
The company forecast that the delinquency rate will continue to down drop for the rest of the year, ending 2011 just above 5%.