Mortgage Delinquency Rate to Seesaw in 2012
For the past three years, the US housing market has been plagued with rampant delinquent mortgages or loans that have remained unattended for a period of 60 days. With the economy still reeling from the effects of the global crisis, unemployment rate across the country continued to rise whereas home values hit an all-time low. As it is, homeowners stand to lose their living domain should these crises continue to affect the economy.
With that said, in a recent report by TransUnion, it appears that the housing market is currently taking tiny steps at a recovery. It is predicted that mortgage delinquency rate is expected to decrease by as much as five percent by 2012 year-end. All though a little modest compared to this year’s 6% result, it is still a welcoming development to look at.
However, it is said that before such comeuppance will take place, a 6.02% delinquency rate is expected to surface by the first few months of the coming year. Taking the trend seen through six consecutive quarterly decreases in mortgage delinquency since 2009, a gradual fall by the last quarter of 2012 is highly imminent.
“Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners’ ability and willingness to pay their mortgages,” said Tim Martin, TransUnion vice president for service business unit.
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