The mortgage delinquency rate, or the rate of borrowers 60 days or more delinquent on their mortgages, is sliding downward as housing continues to move toward a more balanced market, according to a recent TransUnion Industry Insights Report. In fact, the mortgage delinquency rate has declined nearly 30 percent in the last year alone, and 65 percent from its 2010 peak.
“The decline in serious mortgage delinquencies is continuing and even ramping up, with steadily increasing absolute drops over the last year,” says Joe Mellman, vice president and head of TransUnion’s mortgage group. “We believe this is due to a combination of factors, including strong performance by recent vintage mortgage loans, improving home prices and the continued funneling of delinquent accounts through the foreclosure process.”
According to the report, the rate is dropping across all age groups, with millennials and those aged 60 and older at least risk for delinquency, and every state across the board is experiencing yearly declines.
“This is now the third straight quarter where we’ve not only seen year-over-year mortgage origination growth, but also significant increases in the higher risk populations of near prime and subprime—hinting at a loosening of credit and/or a change in the mix of borrowers seeking mortgages,” adds Mellman.
Published with permission from RISMedia.