Report Reveals That Mortgage Delinquencies Have Risen Recently


Trans Unions, a financial institution gave us their quarterly analysis of new trends that are developing in the mortgage industry. The information that they collected determined that for the twelfth straight quarter, mortgage loan delinquency increased and spiked at 6.89 percent, which is an all time national average high. This is the only period in American history where delinquency rates skyrocketed and did not decelerate after three consecutive time span.

Traditionally, this statistic has been seen as a precursor to foreclosure and it rose by 10.24 percent from the previous quarter’s 6.25 percent average. Mortgage borrower delinquency increased by around 50 percent, up from 4.58 percent. These rates in the fourth quarter of 2009 were the highest in Florida and Nevada, meanwhile the lowest mortgage delinquency rates were seen in South Dakota, Alaska, and North Dakota. Areas that demonstrated the largest amount of increase in delinquency from the quarter before were the District of Columbia, Louisiana and Delaware. Every single state in the nation saw an increase in mortgage delinquency rates.

For the mortgage sector in the fourth quarter, the data that was analyzed and collected wasn’t totally hopeless. Thirty eight Metropolitan Statistical Areas actually demonstrated a decrease in their mortgage loan delinquency rates since the previous quarter. Areas in Pennsylvania, Oregon, and Indiana claimed the most improved credit conditions.

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So, what does this mean for the future? Well, TransUnion feels that 60 day mortgage delinquencies will hit its peak between 7.5 and 8 percent over the course of 2010. They also feel that Nevada will suffer from the highest mortgage delinquency rate by the middle of 2010, and they expect North Dakota to continue to boast the lowest mortgage delinquency rate by the summer.

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