Location: New York
Author: RiskCenter Staff
Date: Tuesday, September 9, 2008
Mortgage loan delinquency rates increased 9% during the second quarter ended June 30 from the previous quarter, according to a report released yesterday by TransUnion, a Chicago-based credit bureau.
Mortgage loan delinquencies, which is the percentage of borrowers 60 or more days past due, increased for the sixth straight quarter and reached a national average high of 3.53% for the second quarter. The statistic, which is viewed as a precursor to foreclosures, increased 30 basis points from 3.23% in the first quarter, and increased approximately 51% from the same period last year, according to the report.
Mortgage borrower delinquency rates in the second quarter of 2008 were highest in Nevada and Florida at 6.63% and 6.47%, respectively. The lowest mortgage delinquency rates were in North Dakota at 1.1%, South Dakota at 1.5% and Montana at 1.54%.
The mortgage delinquency rate dropped from the first to second quarter in six states: Missouri, Kansas, Nebraska, North Dakota, New Hampshire and Montana. Nebraska dropped the most (6.67%) from 1.65% to 1.54%, the report states.
Average national mortgage debt per borrower rose a scant 0.4% in the second quarter to $192,681 from $191,917 during the previous quarter. However, the second quarter 2008 average represents a 3.35% increase from $186,432 during the corresponding quarter a year ago.
The area with the highest average mortgage debt per borrower was California at $361,988, followed by the District of Columbia at $355,875 and Hawaii at $304,096. The lowest average mortgage debt per mortgage borrower was West Virginia at $94,765, according to the report.
"The continued increase in the mortgage delinquency rate was not surprising," Keith Carson, a senior consultant in TransUnion’s financial services group, said in a news release. "The second quarter of 2008 showed not only a substantial increase in the nation’s unemployment rate and unprecedented gas prices, but also a continued decline in consumer confidence."
The national 60-day mortgage delinquency rate among mortgage borrowers is expected to continue rising through 2008 to more than 4%, according to Carson. TransUnion predicts mortgage delinquency rates will taper off as economic conditions improve and home prices begin to stabilize in 2009.
Source: http://www.creditandcollectionsworld.com/
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