6 percent. Apparently that’s the magic number these days. That’s the delinquency rate nationwide. That means 6% of mortgages are more than 60 days overdue.
Now, keep in mind, that’s a terrible number! It’s just that it’s the first drop in the rate in 3 years. That’s pretty exciting news for most of
Sure, Nevada and Florida are still the highest in the nation (over 14%)! But they seem to be balanced out by North and South Dakota and Nebraska.
And even in some of the hardest hit states, there were still decreases in the delinquency rate. And for those homeowners 90 or more days delinquent the rates had their smallest increase since 2007. So while that’s not great news, it’s not as bad as it could be.
And I guess so far that’s the message of the recovery. Things aren’t great yet, but they’re better. And I’d imagine most pessimistic journalists would say that that’s the most we can expect.
So what’s caused this trend? Why are more people making their mortgage payments than before?
Well, according to TransUnion’s financial services unit, they think it’s a question of motivation.
What do you think? Post your comment here.
They think that people are just more confident that their home values will increase. So they think it’s worth sticking it out in their current home than going into foreclosure. So they’re just trying harder to meet those mortgage payments and stay afloat.
Of course, they were quick to point out that the rise in values may have something to do with the homebuyer tax credit which expired. It could be, according to Transunion, that prices may level off and people may once again be willing to abandon their homes.
So let’s keep watching those numbers out there. Make sure your clients believe in the value of their homes. And if they want to sell, well, make sure they get the most bang for their bargain.