A new forecast has residential delinquency improving next year.
Home loan delinquency of at least 60 days is projected to finish this month at 6.56 percent, a press release today from TransUnion indicated.
The credit giant noted that late payments were up by more than half between 2006 and 2007, and between 2007 and 2008.
But TransUnion predicted “a turnaround in mortgage delinquencies.”
By the end of 2010, the delinquency rate is expected to ease 17 basis points from the end of this year to 6.39 percent.
“Tied directly to anticipated unemployment rates and housing values, the decrease in delinquencies should be gradual,” TransUnion financial services group Director of Consulting and Strategy Ezra Becker said in the statement. “We expect this change to be driven in part through the continued conservative approach lenders are taking to new loan underwriting, as many of the existing mortgages in the market work their way out of the system and off the books of lending institutions.”
But the forecast isn’t so rosy for Florida, where delinquency is projected to increase 17 percent and reach 16.86 percent by Dec. 31, 2010. In Arizona, late payments are expected to worsen 6 percent, while delinquency is projected to increase by less than a percent in California, New York and Virginia.
North Dakota, on the other hand, will improve 18 percent, and Minnesota is expected to see a 15 percent improvement. The ratio is expected to improve 14 percent in Oklahoma.
