Mortgage Delinquencies Hit 5-Year Low

December 18, 2014

The total balance of seriously delinquent first mortgages is down to the lowest level in more than five years, Equifax reports. 

Its latest National Consumer Credit Trends Report indicates that the total balance on first mortgages at least 90 days past due or in foreclosure was $198.8 billion in November, down more than 29.8 percent from a year ago. Delinquent first mortgages, or home loans 30 days or more late, represented 4.54 percent of outstanding balances last month and are down from 5.87 percent in November 2013. 

Equifax's findings are similar to projections recently released by TransUnion. Steve Chaouki, head of financial services for TransUnion, says mortgage delinquencies are projected to approach pre-recession levels but will likely hover around the historic norm of 1.5 percent to 2 percent.

Source: "Mortgage Delinquency Rates Continue to Shrink," National Mortgage Professional Magazine (Dec. 15, 2014)