Light at the End of the Tunnel as Mortgage Delinquencies Hit a 5-year Low
According to credit reports provider TransUnion the rate of mortgage delinquencies continues to drop (60 days and more) – from 4.09% in Q3 to 3.85% in Q4 of 2013. This result marks a 5-year low.
Still, it might be too early to celebrate, according to TransUnion’s head of financial services Steve Chaouki. Although the past two years saw a gradual decline in mortgage delinquencies, they “continue to be twice as high as levels observed prior to the housing bubble”. Moreover, the housing market is still not stabilized with prices and originations improving in early 2013 only to drop once again during the second half of the year.
Despite that, there is no reason to underestimate the positive trend. According to Mr. Saouki, the terend will continue in the same direction as the new mortgage rules kick in and some of the older mortgages “exit the system”.
To read more about the report, visit housingwire.com.