The rate at which consumers allowed their mortgages to fall 60 days or more past due fell to just 5.82 percent during the second quarter of the year, the sixth straight three-month period in which the rate has fallen, according to the latest statistics from the credit monitoring bureau TransUnion. This rate was down 12.74 percent on a year-over-year basis and a decline from 6.19 percent in the first quarter of the year.
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“Mortgage delinquencies have shown six straight quarters of improvement and the pace of the improvement seems to be picking up speed,” said Tim Martin, group vice president of the U.S. Housing Market for TransUnion. “This is encouraging news. However, at their current level, nearly three times the pre-recession ‘norm,’ and the current pace of improvement, we may not see ‘normal’ delinquency rates until the end of 2015.”
In all, 49 states and the District of Columbia all saw their mortgage delinquencies decline, the report said. Vermont was the only one to experience an increase.
One reason consumers may be able to better avoid delinquency these days is that mortgage rates have been hovering near record lows for some time, and a larger number are now seeking to refinance their existing mortgage to save money. The latest weekly statistics from the Mortgage Bankers Association indicate that refinances increased 30.4 percent on a seasonally adjusted basis from the previous week.
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