The percentage of first-mortgages 30 days or more past due saw a double digit year-over-year decline, according to a report from ""Equifax"":http://www.equifax.com/home/en_us.[IMAGE] [COLUMN_BREAK]
First-mortgage delinquency rates dropped 15 percent in July 2012 from July 2011, the report revealed. In addition, first mortgage severe derogatory rates, which are mainly loans transitioning to REO status, declined 17 percent year-over-year. Home equity revolving delinquency rates saw a smaller yearly decline of 7 percent.
Amy Crews Cutts, chief economist at Equifax, noted that while total credit is growing, mortgage debt is declining overall.
""The decline in mortgage debt is due to loans converting to real estate owned at the end of the foreclosure process, homeowners paying down debt faster through cash-in refinancing, or shortening of the mortgage term as well as borrowers curtailing the debt by adding a bit extra to their payment each month,"" Crews Cutts explained.
Student loan debt, on the other hand, moved in the opposite direction, with 60-day delinquency rates for student loans increasing 14 percent year-over-year.