by Mark Edwards
The Mortgage Bankers Association has released the results of the first quarter 2010 national mortgage loan survey. Alaska continues to have some of the lowest levels of foreclosures and delinquent loans in the country. Alaska has improved slightly over the last six months in these important indicators; however the rates are still higher than the levels seen in 2008.
|
National Rank |
Alaska |
U.S. |
Delinquencies, total 1Q 2010 |
3rd best |
4.6% |
9.4% |
Foreclosures, started 1Q 2010 |
2nd best |
0.5% |
1.2% |
Foreclosures, total in progress |
2nd best |
1.3% |
4.6% |
Subprime delinquencies |
1st best |
11.3% |
27.8% |
Subprime foreclosures |
1st best |
4.1% |
15.4% |
Alaska ranked 3rd best in the nation behind North and South Dakota as having the lowest percentage of mortgage loans delinquent, meaning more than 30 days past due, but not yet in foreclosure. Alaska’s rate of 4.6% was significantly better than the national average of 9.4% and was the second consecutive quarter of small improvements for Alaska. The high was the third quarter 2009 survey at 5.1% for Alaska and the recent low was 2.7% in the third quarter of 2008. Alaska’s rate had deteriorated for four consecutive quarters, prior to the 0.5% improvement seen over the last six months. Nationally the delinquency rate was 6.2% in June of 2008 and increased to 10.4% by the end of 2009. However, the first quarter of 2010 showed a 1% improvement to 9.4%. Alaska ranked 2nd best in both total foreclosures in progress and those started in the 1st quarter of 2010. Alaska’s total foreclosures of 1.3% compares to 4.6% nationally. Alaska’s rate averaged 0.9% in 2008 and then began to rise in 2009 to a high of 1.4% at the 3rd quarter. Since then it has improved slightly for two consecutive quarters to 1.3%. Nationally the foreclosure rate was 2.8% in 2008 and continues to rise each quarter to its current level of 4.6%. Subprime loans, to traditionally unqualified borrowers, were a major source of the mortgage problems that plagued the country recently. However, Alaska continues to have the lowest level of subprime loans delinquent or foreclosed in the U.S. Alaska’s subprime delinquency rate is 11.3% while the national average is 27.8%. The second lowest state is North Dakota at 18.8%. It is important to note that Alaska is still 5% worse than its recent low of 6.3% in the 3rd quarter of 2008.
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