The number of home owners that are 60 days or more behind on their mortgage payments have dropped during the first quarter of 2012. Currently, it is estimated that 5.78 percent of all the mortgage holders in the country are behind on their mortgage. This is down from 6.01 percent in the previous quarter, and down from the 6.19 percent of past due mortgages in the first quarter of 2011.
This was great news for many economists who were unhappy with the raise in behind mortgages during the last two quarters of 2011. Even though the percentage has only dropped by a few tenths of a percent, it is still dropping, and that is good news. Most economists believe that unless there is a severe shock to the economy, this trend should continue.
Before the housing market crashed in 2007, the national average of delinquent mortgages was at two percent. During the bust, however, delinquencies reached its peak in 2009 at seven percent. Economists believe that the delinquency levels must drop back to two percent or below again before the housing market can be considered stable. These same economists believe that delinquency rates will not drop until home values stabilize.
Home prices, however, have continued to drop. The recent report issued by a tracking firm shows that home prices declined again in February, making that the seventh month of declines.
Other Facts And Figures Affecting Mortgage Delinquencies
National unemployment rates have dropped to 8.1 percent in the last month, giving a positive outlook for the economy. As employment figures improve, the housing market will see a definite trend to the positive.
Previously occupied home sales declined in March. However, sales for these properties were significantly high in January and February, making this the best winter sales quarter in five years.
Statisticians tracking delinquent mortgages have also seen a trend of newer mortgages staying current. Mortgages that are in the most trouble are ones issued before 2009. A recent report issued by the Federal Housing Authority (FHA) confirms that newer mortgages at the lower interest rates, are performing much better than older loans.
Delinquency rates are also vary in the different regions of the country. Florida, for instance, is still registering in at almost 14 percent for delinquent mortgages. However, this figure is nearly a full percentage point lower than last year.
Arizona, also a state that was hit hard by foreclosures, is only seeing a 6.8 percent delinquency rate in the state. This is a superb improvement; only a few years ago when nearly half the state was in foreclosure.
All but eight states saw a decline in delinquent mortgages. The following states either remained the same, or had a slight increase:
- New York
- North Dakota
- Maryland
- Washington
- Delaware
- Montana
- Hawaii
- Maine
Different government agencies have taken credit for the decline by stating that programs enacted by the government and private lenders to modify mortgages have helped improve the delinquency rates. The department of Housing and Urban Development (HUD) has stated that they believe that more initiatives must be taken to keep pushing the delinquency rates down.
