The percentage of the nation’s mortgages that were either past due at least a month or in the foreclosure process fell to the lowest level in 12 years. But the outlook is less than stellar.

Thirty-day delinquency on U.S. single-family loans, including loans in the foreclosure inventory, ended the second quarter at 5.41 percent — the lowest it’s been since it was 5.38 percent in the second-quarter 2006.

The non-current rate was 5.79 percent at the end of the preceding three-month period. On the same date last year, 5.53 percent of all residential loans were either delinquent or in foreclosure.

Source: Mortgage Daily