Fueled by an improving credit landscape, the mortgage delinquency rate has rapidly declined, recently falling to 2.72 percent, according to TransUnion’s Industry Insights report. The rate is characterized as the rate at which borrowers are 60 days or more delinquent on their mortgages.
“This is the lowest mortgage delinquency level we’ve seen in several years–down from a peak of nearly 7 percent in early 2010,” explains Joe Mellman of TransUnion. “This is largely due to foreclosures and other seriously delinquent accounts continuing to work their way through the foreclosure process, as well as a reflection of the high credit quality of recent originations.”
Average mortgage balances per consumer continued to increase, up to $188,237, according to the report. The largest mortgage balance growth was observed in the Super Prime risk category, with balances rising 2.5 percent. The Prime risk group also increased by 0.5 percent; the Prime Plus remained approximately the same. Both the Subprime and Near Prime categories experienced mortgage balance declines of -2.9 percent and -1.0 percent, respectively.
Published with permission from RISMedia.