The housing market has been slowly recovering this year, and with that the mortgage delinquency rate has fallen.
TransUnion reports the national mortgage loan delinquency rate continued to decline in the third quarter. The rate was 5.41 percent, a slight drop from the second quarter rate of 5.49 percent. On a year-over-year basis, it fell nearly 8 percent from 5.88 percent.
“Continued declines in mortgage delinquency rates are a welcome sign and reflect relatively more homeowners are able and willing to make their mortgage payments each month,” said Tim Martin, group vice president of U.S. housing at TransUnion. “However, we still have a long way to go to reach more ‘normal’ conditions of a delinquency rate in the 1-2 percent range for the U.S. average.”
Western Markets See Improvements, Eastern Cities See Rate Rises
Arizona and California were two of the markets affected most by the mortgage crisis. They were also the two markets that showed the most improvement. Compared to a year ago, Arizona’s delinquency rate has dropped close to 25 percent. In California, the rates has declined nearly 24 percent.
Not all markets saw improvements, though, as the District of Columbia saw an 11 percent increase in the mortgage loan delinquency rate compared to the third quarter of 2021. New Jersey had the highest rate at 8.33 percent, a 10 percent year-over-year jump.
Those who are struggling to make their mortgage payments should consider refinancing their loan at today’s record-low rates. This could help them avoid tapping into their emergency funds. However, there are some things that need to be completed before refinancing.
• Repair Your Credit – Before applying for a refinance, you should repair your credit, according to SmartMoney. If your score is in rough shape, it would not make sense to refinance, as you wouldn’t get the best available rate. You are able to get a free credit report each year, so requesting this document and looking for areas to improve should be completed prior to refinancing.
• Contact Multiple Lenders – Although rates are at all-time lows, different lenders will offer you different interest rates. That said, you should contact multiple lenders to see who can offer you the best deal. This will ensure that you are saving the most money possible when refinancing.…