TransUnion's quarterly analysis of trends in the mortgage industry found that the national mortgage loan delinquency rate (the ratio of borrowers 60 or more days past due) decreased in the third quarter of 2010 to 6.44%, marking the largest quarterly decline since the fourth quarter of 2006. This period's quarter-over-quarter decrease in the mortgage delinquency rate is twice the drop observed in either of the previous two quarters of 2010 on a percentage basis.
According to Chicago-based TransUnion, this statistic – which is traditionally seen as a precursor to foreclosure – reflects a decrease of 3.45% from the previous quarter's 6.67% national average. Year over year, mortgage borrower delinquency is still up approximately 3.04% (from 6.25% in the third quarter 2009).
TransUnion also found that mortgage borrower delinquency rates in the third quarter of 2010 continued to be the highest in Nevada (15.12%) and Florida (14.63%), while the lowest mortgage delinquency rates continued to be found in North Dakota (1.52%), South Dakota (2.24%) and Nebraska (2.61%). Ten states showed increases in delinquency from the previous quarter, with Maine recording a 4.71% spike.
The average national mortgage debt per borrower decreased again by 0.58% to $190,176 from the previous quarter's $191,284. On a year-over-year basis, the third quarter 2010 average represents a 1.52% decrease over the third-quarter 2009 average mortgage debt per borrower level of $193,121.
‘This decline in mortgage delinquency rates, in tandem with a stabilization in housing prices in many areas of the country and record-low interest rates for mortgage loans, are all positive signs that this industry is moving in the right direction, coming out of one of the worst recessions in recent memory,’ says F.J.Guarrera, vice president in TransUnion's financial services business unit.