Overdues at 5-Year Low.

Washington -- Overall, home loan delinquency rates have fallen to the lowest level in half a decade, and they may be poised to go even lower, according to the Mortgage Bankers Association.

As of March 31, 4.31% of home loans were 30 days or more past due, down 15 basis points from one year earlier, according to the MBA. Moreover, that was the lowest delinquency rate since the second quarter of 2000. The overall delinquency rate has been on a downward trajectory since late 2001.

However, not all news on the delinquency front was good. The American Bankers Association recently reported an increase in home equity delinquencies.

The delinquency rate for closed-end home-equity loans held by banks increased six basis points from the fourth quarter to 2.43% in the first quarter of 2005, according to the ABA. The delinquency rate on home-equity lines of credit increased seven basis points to 0.40%.

But for first lien home loans tracked by the MBA, the improvement was widespread. Foreclosure rates, like delinquency rates, were down from the previous quarter as well as the first quarter of 2004. The percentage of loans in the foreclosure process fell 21 basis points from a year earlier to 1.08% at the end of the first quarter, also the lowest level posted since the second quarter of 2000.

On a seasonally adjusted basis, 0.42% of loans entered the foreclosure process during the quarter, down five basis points from a year earlier.

Despite the improvement, MBA economist Doug Duncan noted in a conference call that the current delinquency rate is about average for the last 20 years.