US Mortgage Delinquency Rate Plummets

The national mortgage delinquency rate fell nearly 26 percent in the second quarter compared to the same period last year, according to TransUnion. Every state and the District of Columbia saw an improvement in the mortgage delinquency rate year-over-year.

“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,” said Tim Martin, group vice president of U.S. Housing in TransUnion’s financial services business unit.

Several markets have posted double-digit drops: Phoenix saw a 47.7 percent decrease in the delinquency rate, and San Francisco posted a 43.7 percent drop. The states that have had some of the highest mortgage delinquency rates — Florida and Nevada — also posted big drops. Florida saw a 26.8 percent decrease, and Nevada dropped 28.7 percent, according to TransUnion.

“Improving house prices and low interest rates have helped some home owners across the country refinance or sell their way out of mortgage payments they were having difficulty affording,” Martin says.

Source: “Mortgage delinquency rates improve across key markets,” HousingWire (Aug. 6, 2013)