(02/18/2011) The
rate at which consumers fell behind on their outstanding home loans declined
once again in the fourth quarter of 2010 and now sits at levels not seen since
the beginning of the recession.
Overall, the national mortgage delinquency rate slipped to
a seasonally adjusted 8.22% for the final quarter of last year, down from 9.13%
in the previous three-month period and the 9.47% observed in the same period a
year prior, according to the latest statistics from the Mortgage Bankers
Association (MBA). This decline brought delinquency rates to levels not seen
since the end of 2008.
Many
consumers may now be avoiding delinquency because of a refinance, which can save
them hundreds of dollars on their monthly payments. By searching online rate
tables for the best
local rates available,
consumers who are also facing income shortfalls can likely do the
same.
"While
delinquency and foreclosure rates are still well above historical norms, we have
clearly turned the corner," said MBA chief economist Jay Brinkmann. "Absent a
significant economic reversal, the delinquency picture should continue to
improve during 2011."
However,
the delinquency rate does not include homes that are in foreclosure, though that
rate declined as well, the MBA reported.
8/2011) For
the fourth quarter in a row, the rate at which consumers struggled to pay down
their outstanding mortgage debt decreased. However, the latest rate of decline
was slower than those observed in previous periods.
The
national rate of 60-day mortgage delinquency continued to slide in the fourth
quarter of 2010 to 6.41%, according to the latest statistics from the credit
monitoring bureau TransUnion. That was a decline of 0.47% from the previous
quarter, when the rate stood at 6.44%. However, that was also the smallest
decrease since the summer of 2009.
Many
consumers who fear they may soon become delinquent on their mortgage payments
due to ongoing money problems may want to consider a refinance, which can save
them hundreds of dollars a month. By reviewing the latest online rate tables,
they can find the best local rates.
"These
models now suggest that the 60-day mortgage delinquency rate will likely be flat
or edge up next quarter, but then begin to drift lower by year end," said Tim
Martin, group vice president of TransUnion's U.S. housing market financial
services unit. "This forecast would change if there are unanticipated shocks to
the economy affecting the recovery in the housing market."
