From prime to Alt-A to subprime, U.S. mortgage borrowers continue to perform historically well and even better than they did a year ago, Friedman Billings Ramsey analysts said last week. But where performance had previously been poor, it remains poor. FBR last month was not able to reduce the number of metropolitan statistical areas where loan performance is, on average, poorer than in other areas, although head of ABS research Michael Youngblood was optimistic.

Using performance statistics for May, FBR analysts found that each state of delinquency, on average, declined on the month from prior year levels. The portion of those loans that are seriously, or more than 90-days, delinquent has shrunk to "striking" levels from last year.

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