The national mortgage delinquency rate declined again in the third quarter, marking the third consecutive quarter that it has decreased, according to TransUnion.
The third quarter delinquency rate was 5.41 percent, down from 5.49 percent in the previous quarter. Compared to the same period a year ago, the rate was down nearly 8 percent from 5.88 percent.
"Continued declines in mortgage delinquency rates are a welcome sign and reflect that relatively more homeowners are able and willing to make their mortgage payments each month," said Tim Martin, group vice president of U.S. Housing in TransUnion's financial services business unit.
Two of the hardest hit markets in the mortgage crisis – Arizona and California – saw significant declines in delinquencies. Both states had improvements of more than 20 percent. However, not every state saw a lower delinquency rate, as eight states saw year-over-year increases.
Many borrowers have taken advantage of record low mortgage rates to make their loans more affordable and easier to pay on time. According to Freddie Mac, fixed-mortgage rates still remain near all-time lows as of the week ending November 8.
