Loans made in the years after the housing boom are generally being paid on time, so as more of the older loans listed on banks’ books as unpaid get resolved, the overall mortgage delinquency rate should continue to decline, said Tim Martin, group vice president of U.S Housing for TransUnion’s financial services business unit.
“The new mortgages are still performing very well, at very low delinquency rates,” Martin said. “That’s why we’re expecting more improvement to come.”
TransUnion forecasts that the national mortgage delinquency rate will drop to just under 4 percent by the end of year.
All the states posted an annual drop in late-payment rates during the third quarter, with California, Nevada, Arizona, Colorado and Utah registering declines of more than 30 percent.
TransUnion draws its data from 52 million installment-based mortgages in the U.S.