Falling Mortgage Delinquency Rate


Fewer Americans experience problems with the repayment of their mortgage debt. This is optimistic news for the housing market, the mortgage market and the economy as a whole. This trend is expected to remain as the home values are on the rise and so is the employment rate.

In the first quarter of 2014, the mortgage delinquency rate was 6.11%. This was the share of home loans at least one payment behind. This rate dropped by 0.28% from the final quarter of 2013 when it was 6.39%. Currently, the mortgage delinquency rate is at its lowest level since 2007. This is a clear indicator that the housing market is stabilizing at a national level, even though there are still areas where people are struggling to repay their mortgage debt.

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The share of loans on which foreclosure was initiated followed a downward trend as well. At the end of the first quarter of 2014 it was 0.45%. It fell from 0.54% in the fourth quarter of 2013. The current level of new mortgages with initiated foreclosure is close to the historic average. It has returned to the levels which we saw in the middle of 2006. This is another indicator for the stabilization in the housing market and in the financial market as well.

At the same time, the share of loans in a foreclosure process was 2.65% during the first quarter of 2014. The foreclosures had the same share during the first quarter of 2008 when the housing crisis was starting to develop. This indicates that the problem with foreclosures has not been completely resolved.

The improvement in the repayment of mortgage loans is primarily due to the rising house prices which jumped up by nearly 11% in just one year. This helped many existing home owners finally get above water. The stricter credit standards are also contributing to the more effective repayment of home loans.



Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info

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