Mortgage delinquency rates improve in 2011 first quarter [marketwire.com]
The rate of mortgage delinquency has dropped to 6.19% in the first quarter of 2011, a new study from TransUnion reported today. The study analyzed U.S. consumers with active credit, particularly whether or not they were 60 or more days past due in paying their mortgage. Those that are past 60 days are considered delinquent.
This drop in mortgage delinquency rates is a good sign, especially considering analysts had estimated the rate would be the same or slow in comparison to 2010 rates. Rather, fewer people are getting behind in mortgage payments as compared to the last quarter of 2010 when the delinquency rate was 3 to 4% higher.
This improvement means that today’s borrowers are less risky, according to Tim Martin, the group VP of the U.S. Housing Market at TransUnion. Also according to Martin, this improvement can be attributed to more people staying put in their homes, rather than selling.
With these new numbers, TransUnion is now expecting the mortgage deliquency rate to continue improving throughout 2011, in large part due to better economic conditions as well as tighter lending standards.
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