Lender Processing Services released their August data, showing that mortgage delinquency rates fell by 10.6 percent in comparison to numbers from one year ago in the same 31-day period.
Also, the nation's foreclosure pre-sale inventory rate dropped by 2 percent from 2011, hitting 4.04 percent in August. The U.S. delinquency rate – amount that homebuyers have severely fallen behind on monthly payments – dropped 2.3 percent from July levels.
Other good news for the housing market last month was that home prices rose by 1.5 percent according to the S&P/Case-Shiller Home Price Indices. These numbers were across the 10-city composite index and was the fourth consecutive month that housing prices increased.
David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices told Mortgage News Daily that even the weakest city in the housing market – Atlanta – was able to cut its annual loss to just fewer than 10 percent.
"The news on home prices in this report confirms recent good news about housing," Blitzer said to the source. "Single family housing starts are well ahead of last year's pace, existing home sales are up, the inventory of homes for sale is down and foreclosure activity is slowing. All in all, we are more optimistic about housing."
With the market on its way to a full recovery, lenders should still invest in loan management software in order to create the best payment plan possible for any prospective borrowers. In addition to an amortization calculator, these tools will ensure that if a mortgage is taken out on a home that the borrower will be able to meet each monthly payment.