Originally Posted by
richie$$$
US mortgage delinquencies to slide further next year
Dec 28, 2011 - PropertyGuru.com.sg
Mortgage delinquency rates in the US are predicted to decline in the last three quarters of next year, after hitting a high of 6.02 percent in the first quarter of 2011, according to TransUnion.
The global information management services firm noted that mortgage loan delinquencies are expected to drop one full percentage point to approximately five percent.
“Although house prices and unemployment will likely face continued pressure next year, this forecast calls for gradual improvements in the second half of 2012 to other key variables, like improving credit quality of new originations, consumer confidence and GDP, that will positively influence homeowners’ ability and willingness to pay their mortgages,” said Tim Martin, Group Vice President of US housing in TransUnion’s Financial Services Business Unit.
Mortgage delinquency rate declines in the US have become more common in recent years, falling seven percent in 2010 and another seven percent this year. TransUnion said the decline next year could be even more significant.
“If things go as expected, there are no additional negative shocks to the US economy and the average borrower’s situation, mortgage delinquencies could fall as much as 16 percent in 2012 compared to 2011,” said Martin.