Mortgage delinquency rates hit an all-time national average high of 5.81% in the second quarter of 2009, but the pace is slowing, according to data from TransUnion. The company forecasts that delinquency rates will continue to climb at a slower pace for the remainder of the year, reaching less than 7% by year-end.
Downward pressure on home values and high unemployment levels, however, will keep delinquency rates from declining until the first half of 2010, says FJ Guarrera, vice president of TransUnion's financial services division.
Mortgage borrower delinquency rates in the second quarter of 2009 were highest in Nevada (13.8%) and Florida (12.3%), while the lowest mortgage delinquency rates were found in North Dakota (1.5%), South Dakota (2.1%) and Alaska (2.4%). The three areas showing the greatest percentage growth in delinquency from the previous quarter were Wyoming (+27.8%), Utah (+22.2%) and Hawaii (+21.7%), TransUnion says.
North Dakota and Ohio both showed a decline in mortgage delinquency rates, down 0.66% and 0.22% from the previous quarter, respectively.
TransUnion anticipates that Nevada will eclipse Florida as the state anticipated to experience the highest mortgage delinquency rate by the end of 2009, reaching as high as 16%. North Dakota is expected to continue to exhibit the lowest mortgage delinquency rate by year-end (1.4%), with forecasts now beginning to show a downward trend.