Foreclosure rates tick up slightly, however.

The Mortgage Bankers Association reported the delinquency rate for loans on one-to-four-unit residential properties fell in the fourth quarter to their lowest level since 2000, while foreclosure rates ticked up slightly. The MBA 4th Quarter National Delinquency Survey reported overall loan delinquency rates fell to a seasonally adjusted rate of 4.06 percent, down by 41 basis points from the third quarter and by 111 basis points from one year ago. The percentage of loans on which foreclosure actions started in the fourth quarter rose by two basis points to 0.25 percent. MBA reported delinquency rates dropped from the previous quarter and on a year-over-year basis across all loan types--conventional, FHA and VA--and across all stages of delinquency--30 days, 60 days and 90+ days. "With the unemployment rate near 50-year lows, wage growth trending higher and household debt levels relative to disposable incomes at 35-year lows, homeowners are in great shape, and residential loan performance is quite strong," said Marina Walsh, MBA Vice President of Industry Analysis.

Source: The Mortgage Bankers Association