Mortgage delinquency rate declines by largest rate in two years

Dennis Norman St Louis RealtorThis morning, Trans Union released a report showing the national mortgage delinquency rate (the rate of borrowers 60 or more days past due) decreased for the sixth consecutive quarter, dropping to 5.82% at the end of the second quarter in 2011 which is a 5.98 percent from the prior quarter, the largest quarterly decrease in 2 years. Since mortgage delinquencies are the precursor to foreclosures, and foreclosures have been one of the major sources of downward pressure on home prices, a decline in mortgage delinquencies is good news and hopefully an indicator that we will see declining foreclosure rates in the coming months. “While relatively low home prices and high unemployment continue to exert upward pressure on delinquency rates, they are more than offset by the impact of more conservative lending policies reflecting consumers with higher credit scores,” said 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. It is because of these dynamics that lenders today take a much closer look at the borrower’s income history and overall debt situation than before the recession began in 2007.” Second Quarter 2011 Mortgage Statistics – Delinquency Rates

                                                                           
Quarter over Quarter               Q1 2011         Q2 2011     Pct. Change  
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USA                                      6.19%          5.82%        (5.98%)
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Year over year                      Q2 2010        Q2 2011      Pct. Change 
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USA                                      6.67%          5.82%       (12.74%)
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Highest Mortgage Delinquency States    Q2 2011    
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Florida                                     13.91%
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Nevada                                      13.04%
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California                                   7.83%
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Arizona                                      7.78%
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Lowest Mortgage Delinquency States      Q2 2011   
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North Dakota                                 1.45%
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South Dakota                                 2.31%
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Nebraska                                     2.43%
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Alaska                                       2.64%
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Top 3 Year-over-Year Increases     Q2 2010        Q2 2011      Pct. Change  
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Maine                                    4.46%          4.69%          5.16%
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South Dakota                             2.23%          2.31%          3.59%
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New Jersey                               7.22%          7.43%          2.91%
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Top 3 Year-over-Year Declines      Q2 2010        Q2 2011      Pct. Change  
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Arizona                                 10.59%          7.78%       (26.53%)
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Utah                                     5.84%          4.36%       (25.34%)
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California                              10.45%          7.83%       (25.07%)
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Q2 2011 Mortgage Statistics – Mortgage Debt Per Borrower

                                                                             

Quarter over Quarter               Q1 2011        Q2 2011      Pct. Change  
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USA                                $190,115.00    $189,205.00        (0.48%)
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Year over Year                     Q2 2010        Q2 2011      Pct. Change  
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USA                                $191,284.00    $189,205.00        (1.09%)
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Highest Mortgage Debt States            Q2 2011   
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District of Columbia                  $369,334.00 
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California                            $335,070.00 
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Hawaii                                $312,183.00 
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Maryland                              $249,237.00 
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Lowest Mortgage Debt States            Q2 2011    
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West Virginia                          $102,807.00
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Mississippi                            $108,011.00
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Oklahoma                               $111,781.00
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Arkansas                               $113,813.00
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Top 3 Year-over-Year Increases     Q2 2010        Q2 2011      Pct. Change  
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West Virginia                       $99,206.00    $102,807.00          3.63%
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North Dakota                       $112,196.00    $115,461.00          2.91%
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Vermont                            $140,069.00    $143,122.00          2.18%
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Top 3 Year-over-Year Declines      Q2 2010        Q2 2011      Pct. Change  
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Nevada                             $238,931.00    $224,100.00        (6.21%)
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Florida                            $190,034.00    $181,524.00        (4.48%)
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Arizona                            $207,815.00    $199,403.00        (4.05%)
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Source - Trans Union

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