Mortgage delinquencies decreased in the second quarter, and observers said the drop - the second in a row - could signal continued improvement in the second half.

The rate for all home loans fell to 4.35% in the second quarter, according to a survey released Thursday by the Mortgage Bankers Association. That's down from 4.46% in the first quarter and the recent high of 4.48% reached in fourth of 1995.

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