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The national mortgage delinquency rate sunk to 4.09 percent in the second quarter of this year, representing a near 26 percent decrease from the same quarter last year, according to data from ""TransUnion"":http://www.transunion.com/.
[IMAGE]The delinquency rate, which includes loans that are 60 days or more past due, also showed a 10 percent quarterly decline.
""This marks the third quarter in a row where we have posted all-time highs in terms of delinquency improvement and that is very welcome news for both borrowers and their lenders,"" said Tim Martin group VP in TransUnion's financial services business unit. ""Many of the delinquent mortgages we have been tracking have been delinquent for a very long time, so it is encouraging to see this number is coming down so significantly.""
[COLUMN_BREAK]The reduction was widespread across the country, with all states, plus the District of Columbia, experiencing annual declines in their delinquency rates. States showing significant improvements were also states plagued with a high rate of 60-plus delinquencies.
For example, Florida and Nevada held the highest delinquency rates, at 9.87 percent and 7.74 percent, respectively. Though, delinquencies decreased by more than 26 percent in each state. The three states that led with the biggest annual declines overall were Arizona (-41.7 percent), California (-40.8 percent), and Colorado (-35 percent).
Furthermore, 95.4 percent of metro areas tracked saw annual declines in their delinquency rate in the second quarter, up from 91 percent in the first quarter of this year.
The downfall was the largest in Phoenix, where the rate plummeted 47.7 percent. Other metros that experienced steep drops included San Francisco (-43.7 percent), Denver (-38.9 percent), Los Angeles (-38.9 percent), and Detroit (-38.8 percent).
According to TrasnUnion's projection for the third quarter, the delinquency rate should slip below 4 percent for the first time since 2008.
Martin noted factors such as improving prices and low interest rates should help with reducing the delinquency rate throughout the year, but warned ""the recent and sizable increase in mortgage interest rates may eventually slow the progress.""
