Mortgage Delinquencies Fall Again

By:: Peter King | May 17, 2011

Fewer homeowners are getting into trouble on their mortgages, as the mortgage delinquency rate has fallen for the fifth consecutive quarter, according to credit reporting firm TransUnion.

The percentage of homeowners over 59 days past due on their mortgages declined to 6.19 percent by the end of March, a decrease of 3.4 percent in the total number of past-due home loans.

Over the past year, mortgage delinquencies have fallen by 8.6 percent, down from a level of 6.77 percent of mortgage borrowers in the first quarter of 2010.

The size of the recent decline came somewhat as a surprise, given that home prices continue to fall, leading to expectations that the delinquency rate would show little or no improvement over the previous quarter. Instead, the shrinkage in delinquencies accelerated, with past-due loans falling considerably more than the 0.5 percent drop reported for the fourth quarter of 2010.

"Decreasing home prices can be risky because they exert upward pressure on mortgage delinquency rates. The fact that mortgage delinquency continues to decline despite this situation demonstrates that today's borrowers are less risky," said Tim Martin, a TransUnion official. "While many homeowners still face pressure to make ends meet, they have lived in their homes for a long time and have diligently been paying their mortgage each month. These are borrowers that have roots in their residential neighborhoods and may already have substantial equity invested."

The company predicts that delinquencies will continue to fall throughout the rest of the year, assuming that the economy continues to improve as expected.

Even as mortgage delinquencies fell, the housing market itself remained sluggish. TransUnion reported that demand for real estate credit continued to fall during the first quarter of the year, hitting its second lowest level since 2000.

Start here to compare debt consolidation rates from top lenders in our network

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

Debt Consolidation

National Rates

Loan Type	Today	+/-
30 yr fixed	3.69
15 yr fixed	3.00
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Debt Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.