by Calculated Risk on 2/28/2013 09:56:00 AM

Note: From the Chicago ISM for February: "The Chicago Purchasing Managers reported the Chicago Business Barometer rose for a second month, up 1.2 points to 56.8, its highest level since last March." PMI: Increased to 56.8 from 55.6. (Above 50 is expansion). Employment: at 55.7, down from 58.0. New orders increased to 60.2 from 58.2. This was above expectations of a reading of 55.0.

LPS released their First Look report for January today. LPS reported that the percent of loans delinquent decreased in January compared to December, and declined about 8% year-over-year. Also the percent of loans in the foreclosure process declined further in January and were down significantly over the last year.

LPS reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) decreased to 7.03% from 7.17% in December. Note: the normal rate for delinquencies is around 4.5% to 5%.

 The percent of loans in the foreclosure process declined to 3.41% in January from 3.44% in December. 

The number of delinquent properties, but not in foreclosure, is down about 11% year-over-year (413,000 fewer properties delinquent), and the number of properties in the foreclosure process is down 21% or 461,000 properties year-over-year.

The percent (and number) of loans 90+ days delinquent and in the foreclosure process is still very high, but the number of loans in the foreclosure process is now steadily declining.

LPS will release the complete mortgage monitor for January in early March.

LPS: Percent Loans Delinquent and in Foreclosure Process
	Jan 2013	Dec 2012	Jan 2012
Delinquent	7.03%	7.17%	7.67%
In Foreclosure	3.41%	3.44%	4.23%
Number of properties:
Number of properties that are 30 or more, and less than 90 days past due, but not in foreclosure:	1,974,000	2,031,000	2,159,000
Number of properties that are 90 or more days delinquent, but not in foreclosure:	1,531,000	1,545,000	1,759,000
Number of properties in foreclosure pre-sale inventory:	1,703,000	1,716,000	2,164,000
Total Properties	5,208,000	5,292,000	6,082,000