The rate of mortgage delinquency increased more than nine percent from the first to second quarter, rising to a national average high of 3.53 percent, according to credit bureau TransUnion.
The delinquency rate, which includes borrowers with mortgage payments 60 days or more past due, is up from the previous quarter’s 3.23 percent average and about 51 percent higher than a year earlier.
Nevada led the nation with a delinquency rate of 6.63 percent, followed by Florida at 6.47 percent, while the lowest delinquency rates were found in South and North Dakota, at 1.5 percent and 1.54 percent, respectively.
Over the last quarter, Wyoming (28.3 percent), Oregon (23.5 percent), and Florida (20.2 percent) saw their delinquency rates surge, while six other states, Missouri, Kansas, Nebraska, North Dakota, New Hampshire, and Montana, saw improvement.
Average national mortgage debt per borrower increased 0.4 percent to $192,681, up 3.35 percent from the year-ago average of $186,432.
California’s average mortgage debt of $361,988 was the highest in the nation, followed by the District of Columbia with $355,875 and Hawaii with $304,096.
“The national 60-day mortgage delinquency rate among mortgage borrowers is expected to continue to rise throughout 2008 from a value of 3.53 percent in the second quarter of 2008 to just over 4 percent by year end,” said Keith Carson, a senior consultant in TransUnion’s financial services group.
“However, TransUnion forecasts that later in 2009 the rise in mortgage delinquency rates will taper off as economic conditions improve and home prices begin to stabilize.”
This echoes similar sentiment expressed last quarter after delinquenices climbed eight percent from the fourth quarter.
The mortgage loan delinquency rate has now risen for six consectutive quarters.
(photo: clairity)