Report: Late mortgage payments more rare
Posted on Wednesday, August 20, 2014 at 9:03:51 AM
The ability to make residential financing payments on time is a skill of many responsible homeowners, but in some cases the economy, job market and other factors get in the way. However, the U.S. economic outlook is positive, and many people aren't falling behind on their mortgages like they used to.
According to TransUnion, the mortgage delinquency rate has fallen across multiple age groups, with the lowest rate actually belonging to the youngest demographic - those under 30 years old, at 2.34 percent. The highest delinquency rate was for those between the ages of 40 and 49, at 4.43 percent.
"Overall, the improvements in the mortgage delinquency rate can be attributed to a number of factors," said Steve Chaouki, head of financial services for TransUnion. "These include the clearing of severely delinquent accounts through foreclosure as well as a lower rate of new delinquencies from post-recession vintages, which generally are of significantly higher credit quality and have experienced much better performance than mortgages originated before the recession."
In addition, Fannie Mae reported that economic growth in the U.S. is expected to be stronger for the remainder of 2014. However, housing market momentum is struggling to keep up, with only slight gains predicted for the rest of this year.