Further health improvements in the residential mortgage market could encourage more individuals to take advantage of a mortgage application and work to get title insurance.

The total delinquency rate for residential mortgages reached 6.04 percent during the second quarter, seven basis points lower than the first quarter's level and more than 90 basis points less than the same quarter in 2013, according to the National Delinquency Survey from the Mortgage Bankers Association. The last time the figure was at such a low level was the final quarter of 2007, while it also slid for the fifth quarter in a row.

Loans that were a part of the foreclosure process dropped to 2.49 percent to end the second quarter, 84 basis points less than the same point one year ago, and 16 basis points less than the first quarter of this year, the report noted. The figure was not this low in the past six years.

"Delinquency and foreclosure rates fell to their lowest levels in more than six years, and the rate of new foreclosure starts is at its lowest level since 2006," said Mike Fratantoni, chief economist at MBA. "Strong job growth and continued increases in home prices in most markets have been the main contributors to these steady improvements in mortgage performance."

Just 0.4 percent of all loans had foreclosure actions started during the second quarter, the report noted. During the first quarter, the figure was 0.45 percent.

Foreclosures drop year-over-year
Another measurement showed similar progress in the residential market. According to a report from CoreLogic, just 49,000 units received foreclosures during June, 9.9 percent lower than the same month last year, when the figure was 54,000 units. There was a slight gain month-over-month, as May's level was 48,000 units.

"The national inventory of foreclosed homes fell for the 32nd straight month to just under 650,000 in June," said Anand Nallathambi, president and CEO of CoreLogic. "Most of the U.S. has reduced its shadow inventory to pre-recession levels, but the Northeast, Florida and the Pacific Northwest remain elevated. The great news here is that the basic underpinnings of the housing market are strengthening, but there is still work to do."

Even with the gradual declines, the market is not yet out of the woods. The report noted that the average foreclosure level pre-recession was approximately 21,000 units per month.