Alaska continues to have one of the lowest levels of foreclosures and delinquent residential mortgage loans in the country according to the Mortgage Bankers Association fourth quarter 2010 survey. Alaska ranked third best in the nation behind North and South Dakota as having the lowest percentage of mortgage loans delinquent.
Alaska’s fourth quarter delinquency rate of 4.25% was significantly better than the national average of 8.9%. The U.S. improved 0.5%, while the delinquency rate in Alaska improved 0.7% from 4.95% in the third quarter of 2010. The highest rate for Alaska was the third quarter 2009 survey at 5.1% and the recent low was 2.7% in the third quarter of 2008.
Alaska ranked 2nd best of all 50 states in both total foreclosures in progress and those started in the fourth quarter of 2010. Alaska’s total foreclosure rate remained unchanged at 1.1%, compared to 4.6% nationally. Alaska’s rate had averaged 0.9% in 2008 and then began to rise in 2009 to a high of 1.4%. It remained at that level in 2010 until it began improving in the third quarter. Nationally the foreclosure rate was 2.8% in 2008 and continued to rise each quarter, reaching 4.6% by year end 2009, where it remains.
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 nation. Alaska’s subprime delinquency rate is 10.9% while the national average is 25.3%. The second lowest state is Colorado at 18.4%, so Alaska is far ahead of the pack in this key category. Alaska’s rate dropped from 12.3% to 10.9% in the last quarter of the year, but is still higher than the recent low of 6.3% in the third quarter of 2008.
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