Despite a major spike of nearly 8% in September mortgage delinquency rates, Lender Processing Services (LPS) reported a 4.9% drop in October. It is common to see a spike in September due to seasonal factors, but the increase typically continues into October, said LPS.
Not only did this jump not continue, but rates actually declined.
In its "First Look" Mortgage report, a preview of the full report which will be released by Dec. 10, LPS revealed that 7.03% of all loans in the U.S. are delinquent, a 7.19% year-over-year decrease.
The data analytics firm also showed a continual decline in the total foreclosure inventory, which dropped nearly 16% annually since October 2011, bringing the rate to 3.61% nationwide.
In the U.S., there are 3,500,000 properties that are 30 or more days past due, but are yet to be foreclosed. The foreclosure pre-sale inventory totaled 1,800,000. These numbers indicate that there are 5,300,000 properties that are 30 or more days delinquent or in foreclosure in the U.S.
U.S. states with the highest percentage of non-current loans were Florida, Mississippi, New Jersey, Nevada and New York. Montana, Wyoming, South Dakota Arkansas and North Dakota led the states with the lowest percentage of non-current loans.