Unprecedented Decline in Mortgage Delinquencies -TransUnion

Mortgage delinquency data released byrnTransUnion today show that mortgage delinquencies are plummeting nationally. The rate of borrowers 60rndays or more past due on their mortgages fell to 4.09 percent in thernsecond quarter of 2013 from 4.56 percent in the first, a decline ofrn10 percent, Delinquencies were down 26 percent from the secondrnquarter of 2012. </p

TransUnion called the rate of declinern”unprecedented.” Tim Martin, group vice president of U.S.rnHousing in the company’s financial services unit said, “Thisrnmarks the third quarter in a row where we have posted all-time highsrnin terms of delinquency improvement and that is very welcome news forrnboth borrowers and their lenders. Many of the delinquent mortgagesrnwe have been tracking have been delinquent for a very long time, sornit is encouraging to see this number is coming down sornsignificantly.”</p

The improvement was evident in everyrnstate and the District of Columbia. Arizona and California showedrnthe greatest positive change, both posting slightly better than 30rnpercent declines in their mortgage delinquency rates. While stillrnhaving the highest delinquency rates in the country, even Floridarn(9.87 percent) and Nevada (7.74 percent) improved dramatically withrntheir current rates reflect decreases of 26.8 percent and 28.7rnpercent respectively. </p

TransUnion expects the mortgagerndelinquency rate to continue its downward trend in the third quarterrnof 2013, finishing below 4% for the first time since 2008. </p

“Improving house prices and low interest rates have helpedrnsome homeowners across the country refinance or sell their way out ofrnmortgage payments they were having difficulty affording,” saidrnMartin. “While we expect these positive factors to continuernreducing the mortgage delinquency rate throughout 2013, the recentrnand sizable increase in mortgage interest rates may eventually slowrnthe progress.”</p

Annual decreases in delinquencies were especially high in severalrnlarge metropolitan statistical areas. Phoenix was down 47.7 percent,rnSan Francisco 43.7 percent, and Denver, Los Angeles, and Detroit allrnsaw delinquencies fall by around 38 percent. TransUnion said 95rnpercent of the MSAs it tracks experienced a year-over-yearrnimprovement.

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