Late-Payment Rate on Mortgages Declines

Wednesday, 20 Aug 2014 10:02 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Fewer U.S. homeowners are falling behind on their mortgage payments, a trend that has reduced the late-payment rate on home loans to the lowest level in six years, according to credit reporting agency TransUnion.

The percentage of mortgage holders at least two months behind on their payments fell in the April-June period to 3.46 percent, down from 4.32 percent a year earlier, the firm said Wednesday.

The latest mortgage delinquency rate was down from the first quarter of this year, when it stood at 3.61 percent.

The last time the rate was lower was the first quarter of 2008, when it was 3.39 percent, according to TransUnion. The firm's records go back to the second quarter of 2007.

The mortgage delinquency rate has been steadily declining over the past two years. At the same time, U.S. home sales and prices have been rebounding while foreclosures have been declining.

Homeowners have seen their finances boosted by rising home values, an improving job market and efforts to restructure home loans so they're more affordable. That has enabled them to make timely payments.

In addition, many of the risky home loans made before 2008 that went unpaid are no longer a factor, because the homes have been sold or foreclosed upon. Loans issued since then, after banks tightened lending standards, are less likely to go unpaid.

That has helped drive lower late-payment rates among younger borrowers.

The mortgage delinquency rate for borrowers under 30 was 2.34 percent in the second quarter, the lowest of any age group. They also accounted for the smallest slice of borrowers with a home loan at 4.2 percent, according to TransUnion.

By age group, borrowers ages 40-49 had the highest late-payment rate at 4.43 percent. They made up about a quarter of all borrowers with a mortgage.

Meanwhile, the number of new home loans issued by lenders tumbled in the first three months of the year by 51 percent to 1.1 million, TransUnion said.

The steep decline came as higher interest rates led fewer borrowers to refinance their existing mortgages and a bitterly cold winter prompted would-be homebuyers to put off their home purchase.

The data on new home loans lag by a quarter, so the latest TransUnion figures cover the January-March period.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

NYT's Nocera: 'OPEC Has Become a Paper Tiger'

Tuesday, 21 Oct 2014 12:34 PM

Should someone be writing the obituary for OPEC? . . .

Nuveen's Doll: Stocks Usually Push Higher After Mid-Term Elections

Tuesday, 21 Oct 2014 12:04 PM

Markets have suffered through some recent volatility, but U.S. stocks may be nearing the end of the current correction,  . . .

Apple Issues Security Warning for ICloud

Tuesday, 21 Oct 2014 20:42 PM

Apple has posted a new security warning for users of its iCloud online storage service amid reports of a concerted effor . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved