Mortgage Delinquencies Have Risen Recently

Trans Unions, a financial institution came out with their quarterly analysis of new

trends that are developing in the mortgage industry, and the data is very discouraging. The information that they collected revealed that for the twelfth straight quarter, mortgage loan delinquency increased and spiked at 6.89 percent, which is an all time national average high. This is the only period in American history where delinquency rates skyrocketed and did not decelerate after three consecutive time span.

Traditionally, this statistic is seen as a precursor to foreclosure and it increased by 10.24 percent from the previous quarter's 6.25 percent average. Mortgage borrower delinquency almost doubled, up from 4.58 percent. In Florida and Nevada these rates in the fourth quarter of 2009 were the highest , meanwhile the lowest mortgage delinquency rates were seen in South Dakota, Alaska, and North Dakota. Areas that demonstrated the largest amount of increase in delinquency from the quarter before were the District of Columbia, Louisiana and Delaware. Every single state in the nation saw an increase in mortgage delinquency rates.

For the mortgage sector in the fourth quarter, the data that was collected and published was not completely terrible. Thirty eight Metropolitan Statistical Areas actually demonstrated a decrease in their mortgage loan delinquency rates since the previous quarter. Areas in Pennsylvania, Indiana and Oregon claimed the most improved credit conditions.

These changes in delinquency reflect the idea that the recession and its eventual recovery are both localized in unemployment level and house pricing conditions. A small bit of hopeful information is that in the third and fourth quarters of 2008, the average price of single family homes that already existed dropped 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.

So, what does this mean for the future? Well, TransUnion feels that 60 day mortgage delinquencies will hit its peak between 7.5 and 8 percent over the course of 2010. They also expect North Dakota to continue to boast the lowest mortgage delinquency rate by the summer, and feel that Nevada will suffer from the highest mortgage delinquency rate by the middle of 2010.

by: Mallory Megan

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