The mortgage industry continues to see the negative effect of the mortgage crisis across the country as delinquency rates again increased over the previous period. According to credit-report provider TransUnion, the number of borrowers at least 60 or more days behind on their mortgage increased for the ninth consecutive quarter, hitting an average high of 5.22%. Traditionally this statistic is seen as a precursor to foreclosures.
From The WSJ: The first-quarter national average is 14% higher than the fourth-quarter average and is up 62% from a year earlier, when the average was 3.23%.
TransUnion.com senior consultant Keith Carson called the sequential increase “troubling.” The current downturn’s quarterly delinquency-growth rate is nearly double that seen during 2001’s recession.
But not all is bad, said Mr. Carson, as the quarterly growth rate fell from the prior quarter for the first time since the current recession began in December 2007. “While this may sound like trying to make good news out of bad,” he said, “in fact it is an indication that we may be currently working our way through the worst of the recession.”
According to TransUnion.com, delinquency rates were highest in Nevada at 11.6%, followed by Florida at 11%.
Average national mortgage debt per mortgage borrower rose nearly 2% on a Y/Y basis to $195,000, said Chicago-based TransUnion.