The Q2 2011 TransUnion data was recently released, showing the national mortgage delinquency rate dropped 5.8 percent in the second quarter of 2011. Showing improvement for six consecutive quarters, the mortgage delinquency rate showed the greatest drop in the second quarter of this year.
Despite low home prices and high unemployment, higher standards for loan requirements and consumers with good credit scores entering the market are helping lower the rate, according to Tim Martin, group vice president of the U.S. housing market in TransUnion's financial services business unit.
"Not only are these consumers less likely to default if house prices continue to edge downward throughout the year, but their willingness to repay their debt obligations in the face of high unemployment rates is greater," Martin said.
According to the data, North Dakota and South Dakota have the lowest delinquency rates at 1.45 percent and 2.31 percent respectively. Florida and Nevada have the highest delinquency rates at 13.91 percent and 13.04 percent. TransUnion anticipates the delinquency rate to continue to fall for the remainder of 2011, but Martin does not expect to see a national delinquency rate at pre-recession levels until the end of 2015.
A recent survey from Mortgage Marvel Rate Trends found interest on 30-year fixed-rate mortgages dropped 0.17 percent to 4.42 percent. After dropping to a new six-month low at 4.42 percent earlier this week after news of the Standard and Poor's downgrade pushed investors' money into U.S. securities, the rates rebounded slightly. As rates remain low, homeowners should refinance now before the rates increase in October.
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