Unprecedented Decline in Mortgage Delinquencies
Jann Swanson | Mortgage News Daily | Aug 6 2013 | link
Mortgage delinquency data released by TransUnion today show that mortgage delinquencies are plummeting nationally. The rate of borrowers 60 days or more past due on their mortgages fell to 4.09 percent in the second quarter of 2013 from 4.56 percent in the first, a decline of 10 percent, Delinquencies were down 26 percent from the second quarter of 2012.
TransUnion called the rate of decline “unprecedented.” Tim Martin, group vice president of U.S. Housing in the company’s financial services unit said, “This marks the third quarter in a row where we have posted all-time highs in terms of delinquency improvement and that is very welcome news for both borrowers and their lenders. Many of the delinquent mortgages we have been tracking have been delinquent for a very long time, so it is encouraging to see this number is coming down so significantly.”
The improvement was evident in every state and the District of Columbia. Arizona and California showed the greatest positive change, both posting slightly better than 30 percent declines in their mortgage delinquency rates. While still having the highest delinquency rates in the country, even Florida (9.87 percent) and Nevada (7.74 percent) improved dramatically with their current rates reflect decreases of 26.8 percent and 28.7 percent respectively.
TransUnion expects the mortgage delinquency rate to continue its downward trend in the third quarter of 2013, finishing below 4% for the first time since 2008. Read more…