Subprime RMBS delinquencies dipped to 46.3 percent in March from 46.9 percent the prior month, but are still well above the 39.8 percent rate seen a year ago.
Subprime delinquencies increased for 44 straight months, from a low point of 6.2 percent in June 2006, before things took a turn for the worse.
“The improvement in subprime delinquencies may be nothing more than a seasonal anomaly of tax refunds being utilized to help borrowers catch up on late mortgage payments,” said Managing Director Vincent Barberio, in a press release.
“Nonetheless, March roll rates fell significantly from last month and are now at their lowest level in over two years.”
The roll rate is the pace at which performing loans become delinquent.
Meanwhile, the prime RMBS delinquency rate climbed to 10.1 percent, thanks to a 34th consecutive monthly increase in serious delinquencies.
Mortgage lates on prime loans, which are intended for the most creditworthy borrowers, increased from 9.9 percent in February and 4.8 percent a year ago.
Prime jumbo loans are performing even worse, especially in California, which holds 44 percent of the $371 billion market share.
The delinquency rate for such loans climbed to 11.8 percent from 11.6 percent month-to-month in the Golden State.
In Florida, the prime jumbo mortgage delinquency rate increased to 17.5 percent from 17 percent; fortunately the state only holds a six percent share.