NEW YORK (MainStreet) Consumers are keeping up with their mortgages and paying them on time as the mortgage delinquency rate declined for the ninth consecutive quarter to 3.61% at the end of the first quarter, according to TransUnion's latest mortgage report.
The mortgage delinquency rate, which is calculated by the rate of borrowers who are 60 days or more delinquent on their mortgages, has declined more than 24% in the last year, and it is now at the same level in the second quarter of 2008.
"It's encouraging to see mortgage delinquencies drop once again, especially during a period when mortgage originations slowed considerably," said Steve Chaouki, head of financial services for TransUnion, the Chicago-based credit and information management company. "This trend in improved performance is driven in part by lenders working their way through the foreclosure backlog, along with continued conservatism in underwriting new mortgages."
This trend is occurring in all 50 states and the District of Columbia between the first quarter of 2013 and the first quarter of 2014. The largest declines continued to occur in states that were impacted the most impacted by the mortgage crisis. In Arizona, the delinquency rate fell by 37.8%, while California also experienced a steep decline of 36.9% and Nevada's rate declined by 34.0%.
TransUnion is forecasting that the downward consumer delinquency trend will continue into the second quarter of 2014, with mortgage delinquencies falling to approximately 3.40% by the end of June.