Another provider of national credit data reported today that mortgage delinquencies have been falling during the first half of the year, suggesting that the housing sector is beginning to stabilize.
TransUnion’s latest quarterly analysis found that delinquencies over 60 days decreased again in the second quarter to a level of 6.67 percent – only marginally lower than in the first quarter of this year.
This statistic reflects a decrease of 1.48 percent from the previous quarter’s 6.77 percent national average. Year over year, mortgage borrower delinquency is still up approximately 14.8 percent (from 5.81 percent in the second quarter 2009).
Mortgage borrower delinquency rates in the second quarter of 2010 continued to be highest in Nevada (15.86 percent) and Florida (15.02 percent), while the lowest mortgage delinquency rates continued to be found in North Dakota (1.61 percent), South Dakota (2.23 percent) and Nebraska (2.61 percent). Twelve states showed increases in delinquency from the previous quarter with Rhode Island (+4.63 percent), New Mexico (+4.45 percent) and Washington (+3.39 percent) leading the pack.
Measures of later-stage mortgage delinquency, such as the ratio of borrowers 90 or 120 or more days past due, provide additional positive news. For the first time since before the recession began in 2007, these later-state delinquencies rates have now both declined nationally from where they were last quarter.
The average national mortgage debt per borrower again decreased (0.77 percent) to $191,284 from the previous quarter’s $192,774. On a year-over-year basis, the second quarter 2010 average represents a 1.3 percent decrease over the second quarter 2009 average mortgage debt per borrower level of $193,811. The area with the highest average mortgage debt per borrower continued to be the District of Columbia at $366,627, followed by California at $345,502 and Hawaii at $311,130. The lowest average mortgage debt per borrower remained in West Virginia at $99,206. Quarter over quarter, Vermont showed the greatest percentage increase in mortgage debt (+2.1 percent), followed by New Mexico (+1.96 percent) and North Dakota (+0.65 percent). Areas showing the largest percentage drop in average mortgage debt were Nevada (-3.12 percent), Arizona (-3.0 percent) and Florida (-1.80 percent).
On a year-over-year basis at a national level, mortgage originations dropped almost 50 percent. The drop was across all states, with the smallest decline in year-over-year originations seen in North Dakota (-26.8 percent) and Arkansas (-31.4 percent). Idaho and Wisconsin experienced the steepest year-over-year declines (-58.7 percent and -58.6 percent, respectively).
“The second quarter decline in mortgage delinquency gives further credence to the notion that the credit market is stabilizing. Although this is good news for the consumer, the economy is still burdened by high unemployment, upcoming ARM resets and a glut of foreclosures,” said FJ Guarrera, vice president in TransUnion’s financial services business unit.
“The dynamics inside the mortgage market are changing. It is ironic that, with record-setting low interest rates, a large inventory of homes and low home prices, this is one of the most affordable times to buy a house within the last 50 years — yet most consumers are not considering a home purchase the investment opportunity it was considered in the past. Add to that irony and concurrent with these near perfect consumer buying conditions, tighter lending standards and increased documentation scrutiny have made it difficult for many consumers to qualify for a mortgage.”
Just as mortgage delinquency trends differ between the national and state economies, metropolitan areas also showed different movements in the second quarter of this year. Sixty-two percent of the metropolitan statistical areas (MSAs) showed a decrease in their 60-day mortgage delinquency rates since last quarter, as compared to a 59 percent between the fourth quarter of last year and first quarter of 2010.
Changes are even more significant in later stage delinquency measures. Sixty-four percent of all MSAs showed a decrease in their 90-day mortgage delinquency measure as compared to only 45 percent from the previous period. Furthermore, the percentage of MSAs showing a decline in their 120-day delinquency ratio almost doubled from the previous quarter-over-quarter levels.
“TransUnion believes that the 60-day mortgage delinquency rate will likely continue to drift downward in 2010, possibly nearing 6.4 percent nationally by the end of the year. Note that this forecast is based on various economic assumptions, including the assumption that both real estate values and the unemployment picture will improve gradually. This forecast would certainly change if there are unanticipated shocks to the economy affecting the recovery in the housing market,” said Guarrera.
With regard to regional forecasts, Florida is again anticipated to experience the highest mortgage delinquency rate by the end of 2010, reaching as high as 16.2 percent. North Dakota is still expected to continue to exhibit the lowest mortgage delinquency by year-end with a rate of 1.5 percent.
Pingback: i need a letter template to fix my credit report? | How Can I Improve My Credit Score
Pingback: www.Richard-Weaving.com » Ivernia Reports Second Quarter 2010 Financial Results
Pingback: TransUnion Reports Delinquencies Fall for Second Straight Quarter … Body On Me
Pingback: US Household Debt Shrank 1.5% in the Second Quarter – Bloomberg | SaveMeFromForeclosure.com
Pingback: Tweets that mention TransUnion Reports Delinquencies Fall for Second Straight Quarter | RealEstateEconomyWatch.com — Topsy.com
Pingback: Fox News parent firm gives $1 million to GOP group North Capitol Street
Pingback: Carlsberg Q2 profit rises 36 pct, upgrades outlook North Capitol Street
Pingback: Back to Basic, Nokia X3 Touch and Type Announced – SlashPhone | BMW Bluetooth
Pingback: Back to Basic, Nokia X3 Touch and Type Announced – SlashPhone | BMW Bluetooth
Pingback: Coast Lines: Aug. 16, 2010 | tea house
Pingback: Hancock Fabrics Announces Conference Call to Discuss Second Quarter 2010 Results | audio conference calling
Pingback: Philadelphia Night Life – Hotels, Bars, Restaurants, Entertainment and More » Blog Archive » Philadelphia Hotels and Nightlife | Titanic Quarter Set To Change The Face Of Belfast
Pingback: US Household Debt Shrank 1.5% in the Second Quarter – Bloomberg
Pingback: Difference between nursing schools and science of pre-nursing degree?
Pingback: Sino Clean Energy, Inc. Announces Record Second Quarter 2010 Revenue of $24.1 million and Adjusted EPS of $0.32 | Fast Weight Loss Diet – How To Lose Weight, Quick Weight Loss Tips
Pingback: Here is a weekend funny… see if you like it :)? | mens business suit, women, boy
Pingback: Why would my local credit union only report to Experian, and not Transunion and Equifax? | credit
Pingback: Credit Card Performance Improves | ach-debit
Pingback: Which nationwide consumer credit reporting company should I get my free report from? | credit
Pingback: How to get a collection agency I have already paid to get the credit reporting agency to remove negative info? | ach-debit
Pingback: Credit Card Delinquencies Continue to Fall in 2Q; Average Consumer Credit Card Balances Lowest in Eight Years … | credit
Pingback: Credit card debt at lowest level in eight years: TransUnion | ach-debit
Pingback: TransUnion: Credit Card Debt Falls To Eight-year Low In Q2 | credit
Pingback: Credit Card Performance Improves | credit
Pingback: U.S. sales life insurance increased by 7%, continuing a rebound | very cheap car insurance | Car Insurance Information Online!
Pingback: How can I get a bankruptcy removed from my credit report? | credit
Pingback: Credit Card Delinquencies Continue to Fall in 2Q; Average Consumer Credit Card Balances Lowest in Eight Years … | ach-debit
Pingback: TransUnion: US Auto Loan Delinquencies Tumbled In 2Q – Wall Street Journal
Pingback: What’s the best way to petition against credit rating agencies? | credit
Pingback: Can I request my credit card company to report payment history to all 3 credit bureaus? | credit
Pingback: What does it mean if my credit report Date of Last Activity column reads NOT REPORTED? | credit
Pingback: Check Credit Reports | What is A Good Credit Report Score?
Pingback: Michael Shedlock on The Alex Jones Show 2/2:Bernanke’s Big Scam | GrantGift.com | US Government Grants for Free!
Pingback: How do I remove an expired item from my credit report? | credit
Pingback: TransUnion: Almost 20 Percent Decline in National Auto Loan Delinquency Rates in Second Quarter of 2010 | credit
Pingback: What credit card company or bank doesn’t check transunion only equifax and experian ? | credit
Pingback: Utterly Free of charge Credit Report – No Credit Card & No Hidden Prices : Loans Blog
Pingback: Does HEB grocery store run a Credit Check before hiring for a part-time Cashier position? | credit
Pingback: CREDIT QUESTION. How can one credit report delete a negative account and another leave the same account on? | credit
Pingback: Capital One declined my credit card application even though i have good credit? | credit
Pingback: If I apply for an auto loan at a car dealership, which credit bureau do they usually pull my credit score from | credit
Pingback: ** Personal Loans **? | 125 home equity loans
Pingback: if you have bad debt and you pay it off how long does it take to fall off? | ach-debit
Pingback: Trans Union Deletions – January 14 2010 | Student Loans Refinance
Pingback: What happens if you are 1 day late on your credit card payment? | credit
Pingback: Wells Fargo profit rises 19 percent, tops forecasts | fast loans blog
Pingback: S.A. scoreson creditare lagging North Capitol Street
Pingback: house prices information
Pingback: Atlanta Roofing