Ezine Content

Financial experts Trans Unions came out with its quarterly analysis of new trends in the mortgage industry. They determined that mortgage loan delinquency increased for the twelfth straight quarter and hit 6.89 percent, which marks all time national average high. This is the only time in American history where delinquency rates rose and did not decelerate after three consecutive periods.

This statistic is generally considered the beginnings of foreclosure and it rose by 10.24 percent from the previous quarter’s 6.25 percent average. The rate at which mortgage borrowers went into late payments is up by about 50 percent, up from 4.58 percent.

Nevada and Florida were the two states with the highest amount of mortgage borrower delinquency rates while the lowest mortgage delinquency rates were North Dakota, South Dakota and Alaska. Areas that showed the greatest amount of growth in delinquency from the previous quarter were the District of Columbia, Delaware and Louisiana. Every state in the country saw an increase in mortgage delinquency rates.

The information that was revealed was not all bad for the mortgage sector in the fourth quarter. Thirty eight Metropolitan Statistical Areas actually demonstrated that their mortgage loan delinquency rates were falling since the third quarter. Areas in Oregon, Indiana and Pennsylvania showed the most improved credit conditions.

The differences in the rates of delinquency point to the fact that the recession and eventual recovery are based both on house price conditions and unemployment levels. A bit of good news is that in the third and fourth quarters of 2008, the average price of single family homes that already existed fell to almost seven percent between 2008’s third and fourth quarters, but in 2009 it only dropped -0.4 percent between the third and fourth quarters of 2008.

What can this mean for the future? TransUnion predicts that late mortgage payments within a 60 day timespan will hit a high between 7.5 and 8 percent over the course of 2010. Also, it is thought that Nevada will experience the highest mortgage delinquency rate by the middle of 2010, and North Dakota is expected to continue to show the lowest mortgage delinquency rate by the summer. – 35634

Mallory Megan is employed by a (http://www.rapidrecoverysolution.com) debt collection company. Also she composes stories on business and finance, consumer spending and (http://www.707creditscore.com/rapid-recovery-solutions) collection agencies.