Late Mortgage Payments Hit 3-Year Low
MIAMI (CBSMiami) – South Florida’s role in the housing crisis has been well documented, but there finally may be some good news rolling in for homeowners.
According to National Public Radio, the percentage of borrowers who have fallen behind have dropped to a three-year low. However, credit reporting agency TransUnion said the numbers of mortgages going unpaid is unlikely to return to pre-Great Recession levels anytime in the near future.
NPR reported roughly 5.49 percent of the nation’s mortgages were behind on their payments by 60 days or more from April to June.
The numbers come as home prices rose 2.2 percent from April to May, which was the second increase after seven months of flat or declining readings, NPR said. Still, sales of new homes fell in June after reaching a two-year high in May and sales of previously occupied homes also declined, but were less than last year.
TransUnion said the mortgage delinquency rate isn’t likely to fall below 5 percent this year. Before the housing bust of 2008, the mortgage delinquency rate was roughly 2 percent. It climbed as high as 7 percent in the fourth quarter of 2009, but has been steadily declining since then.