Mortgage Delinquencies Down 9% Annually, But Still Too High According To Report

by devteam August 8th, 2012 | Share

The second quarter saw the secondrnconsecutive decline for serious (over 60 days) mortgage delinquencies whichrnstood at 5.49 percent at the end of that quarter compared to 5.78 percent atrnthe end of Quarter One.  During thernsecond quarter of 2011 the rate was 5.82 percent.  The rate has declined 9 percent since thernfirst of the year.</p

TransUnion, in its quarterly analysis ofrncredit-active U.S. consumers, noted that between Quarters One and Two all butrnfive states saw decreases in their delinquency rates and 76 percent of metropolitanrnareas (MSAs) saw improvement during the quarter.  In the previous quarter 73 percent of MSAsrnimproved. </p

“While it is a positive sign tornsee mortgage delinquency rates decrease, meaning more and more homeowners werernable to make their mortgage payments, the rate of the decline is still not at arnpace that will push levels significantly closer to pre-recession norms,”rnsaid Tim Martin, group vice president of U.S. Housing in TransUnion’s financialrnservices business unit. “The pace of improvement should pick up whenrnwe review third quarter results, helped by a few months of relatively good newsrnon home prices, this year’s resurgence in refinance activity related to HARPrn2.0 and record low mortgage interest rates.”</p

The greatest improvement on anrnannual basis came in two of the states that needed it most – Arizona andrnCalifornia.  Since the second quarter ofrn2011 California’s rate has dropped nearly 22 percent to 6.13 percent and Arizona’srnis down 21 percent to 6.14 percent.  TransUnionrnsaid both states had double-digit rates two years ago.</p

Two states remain in double digits -rnFlorida with a serious delinquency rate of 13.48 percent and Nevada at 10.85rnpercent.  New Jersey and Maryland havernthe third and fourth highest rates at 8.15 and 6.79 percent respectively.  The lowest rates are in North and South Dakotarn(1.32 and 1.94 percent respectively), Nebraska (2.24 percent) and Wyoming (2.41rnpercent.)</p

The average mortgage debt per borrowerrnin the U.S. in the second quarter was $188,341, a 0.08 percent increase fromrnthe first quarter’s debt of $188,196 but down 0.46 percent on an annualrnbasis.  The highest mortgage debt is inrnthe District of Columbia ($374,709), California ($329,465) and Hawaii ($314,415).  The lowest debt is in West Virginiarn($106,533), Mississippi ($106,533), and Oklahoma ($113,537).

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About the Author


Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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