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Mortgage delinquencies hit pre-recession levels

(02/18/2011) The rate at which consumers fell behind on their outstanding home loans declined once again in the fourth quarter of 2010 and now sits at levels not seen since the beginning of the recession.

Overall, the national mortgage delinquency rate slipped to a seasonally adjusted 8.22% for the final quarter of last year, down from 9.13% in the previous three-month period and the 9.47% observed in the same period a year prior, according to the latest statistics from the Mortgage Bankers Association (MBA). This decline brought delinquency rates to levels not seen since the end of 2008.

Many consumers may now be avoiding delinquency because of a refinance, which can save them hundreds of dollars on their monthly payments. By searching online rate tables for the best local rates available, consumers who are also facing income shortfalls can likely do the same.

"While delinquency and foreclosure rates are still well above historical norms, we have clearly turned the corner," said MBA chief economist Jay Brinkmann. "Absent a significant economic reversal, the delinquency picture should continue to improve during 2011."

However, the delinquency rate does not include homes that are in foreclosure, though that rate declined as well, the MBA reported.

8/2011) For the fourth quarter in a row, the rate at which consumers struggled to pay down their outstanding mortgage debt decreased. However, the latest rate of decline was slower than those observed in previous periods.

The national rate of 60-day mortgage delinquency continued to slide in the fourth quarter of 2010 to 6.41%, according to the latest statistics from the credit monitoring bureau TransUnion. That was a decline of 0.47% from the previous quarter, when the rate stood at 6.44%. However, that was also the smallest decrease since the summer of 2009.

Many consumers who fear they may soon become delinquent on their mortgage payments due to ongoing money problems may want to consider a refinance, which can save them hundreds of dollars a month. By reviewing the latest online rate tables, they can find the best local rates.

"These models now suggest that the 60-day mortgage delinquency rate will likely be flat or edge up next quarter, but then begin to drift lower by year end," said Tim Martin, group vice president of TransUnion's U.S. housing market financial services unit. "This forecast would change if there are unanticipated shocks to the economy affecting the recovery in the housing market."

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