Last week, TransUnion predicted that the steadily declining number of mortgage loan delinquencies in the U.S. would fall to below pre-recession levels by the end of 2015. This week, Equifax released data that seems to go right along with that forecast.
According to the latest National Consumer Credit Trends Report released on Monday by Equifax, the cumulative balance of seriously delinquent mortgages (those 90 days or more overdue or in foreclosure) totaled $198.8 billion for November, the lowest level in five years. That amount represented more than a 29.8 percent decrease from November 2013.
Lenders are also writing off the fewest number of loans since before the housing bubble burst. The balance of home-finance write-offs year-to-date through the first 11 months of 2014 was $91.2 billion, its second-lowest level in eight years, according to Equifax.
The number of delinquent first mortgages, which are those 30 days or more past due, comprised 4.54 percent of outstanding mortgage balances in the U.S. in November, according to Equifax. This percentage represented a decline of 5.87 percent from November 2013.
The collective outstanding balance for home equity lines of credit (HELOCs) is also on the decline The November 2014 HELOC balance was $515.4 billion, also the lowest level in five years, and a decrease of 3.6 percent year-over-year, according to Equifax. The total number of outstanding HELOCs in the U.S. dropped down to 11.1 million, the lowest level in 10 years. Delinquent balances on HELOCs accounted for 2.37 percent of outstanding balances in the U.S. in November, dropping from 2.70 in November 2013, according to Equifax.
The percentage of delinquent balances on home equity installment loans declined year-over-year, down from 3.22 percent in November 2013 to 2.45 percent in November 2014, according to Equifax.