Mortgage Delinquency Rate Down In Q2

Mortgage Delinquency Rate Down In Q2 The national mortgage delinquency rate, the rate of borrowers 60 or more days past due, dropped in the second quarter to 5.49%, according to Chicago-based TransUnion. This is the second consecutive quarterly drop for the mortgage delinquency rate, which has fallen nearly 9% in the first six months of this year.

Between the first and second quarters of this year, all but five states experienced decreases in their mortgage delinquency rates. On a more granular level, 76% of metropolitan areas saw improvement in their mortgage delinquency rates in the second quarter – up from 73% in the first quarter and 36% in the fourth quarter of 2011.

On a year-over-year basis, two of the states most negatively impacted by the mortgage crisis – Arizona and California – have seen the greatest improvement in mortgage delinquencies. Since the second quarter of 2011, California's mortgage delinquency rate has dropped nearly 22% to 6.13%, while Arizona's rate declined 21% to 6.14%. Both states had double-digit delinquency levels just two years ago.

‘While it is a positive sign to see mortgage delinquency rates decrease, meaning more and more homeowners were able to make their mortgage payments, the rate of the decline is still not at a pace that will push levels significantly closer to pre-recession norms,’ says Tim Martin, group vice president of U.S. housing in TransUnion's financial services business unit. ‘The pace of improvement should pick up when we review third quarter results, helped by a few months of relatively good news on home prices, this year's resurgence in refinance activity related to HARP 2.0 and record low mortgage interest rates.’


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