The mortgage delinquency rate – borrowers who are late on their mortgage payments by 60 days or more – is rapidly declining, dropping to 2.72 percent in the second quarter, according to a new report by TransUnion. The delinquency rate has fallen 20 percent in the last year alone, and by about half in the last three years, when it stood at 5.39 percent in the second quarter of 2012.

 Read more: Loan Delinquencies Back to Pre-Crisis Levels
Forty-eight states and all of the top 10 largest metro areas saw double-digit declines in seriously delinquent mortgages. The largest declines were in Miami (down 40 percent from 8.87 percent in the second quarter of 2014 to 5.31 percent in the second quarter of 2015) and Los Angeles (down 29.1 percent from 2.62 percent in 2014 to 2.07 percent in 2015).

"This is the lowest mortgage delinquency level we've seen in several years – down from a peak of nearly 7 percent in early 2010," says Joe Mellman, vice president and head of TransUnion’s mortgage group. "This is largely due to foreclosures and other seriously delinquent accounts continuing to work their way through the foreclosure process, as well as a reflection of the high credit quality of recent originations."

TransUnion reported mortgage originations to subprime and near prime consumers had a year-over-year double-digit growth of 13.3 percent and 22.4 percent – a possible signal to a slight loosening of credit.

"We believe a major reason for the increase in mortgage originations was due to falling mortgage interest rates," Mellman says. "The growth in jumbo loans for the Prime Plus and Super Prime risk tiers was another key driver. Despite this increase, it should be noted that there were 1.1 million fewer mortgage originations this past quarter compared to the pre-recession high in the third quarter of 2007."

The average mortgage balance per consumer rose to $188,237 in the second quarter of 2015. For comparison, mortgage balances were at $186,999 at this point last year.

Source: TransUnion