Mortgage delinquencies down in U.S., Utah
The number of Utah and U.S. borrowers falling behind on their mortgage payments dropped sharply at the end of last year, a sign the foreclosure crisis is beginning to ebb.
The Mortgage Bankers Association on Friday said the percentage of Utahns who missed just one payment on their home loans fell to 3.2 percent in the October-through-December quarter. That's down from 3.5 percent in the third quarter.
Nationally, the percentage of borrowers who were 30 days behind dropped to 3.6 percent in the fourth quarter, down from 3.8 percent.
The declines were even more remarkable because delinquencies usually rise in the final months of the year. That's because of higher heating bills and holiday spending.
The improved late-payment trend is significant. It means those going into foreclosure will continue to decline this year, the trade group said.
'We are likely seeing the beginning of the end of the unprecedented wave of mortgage delinquencies and foreclosures that started with the sub-prime defaults in early 2007,' chief economist Jay Brinkmann said.
In Utah, slightly more than 13,900 loans were 30 days past due in the fourth quarter. Three months earlier, about 15,300 loans were delinquent.
Despite the positive quarter-to-quarter trend, the 30-day delinquency rate at year's end was actually higher than a year earlier. The percentage of borrowers who missed a payment in the last quarter of 2008 was 3 percent, almost a point lower than the U.S. rate of 3.9 percent.
Jeff Thredgold, an economist who consults for Zions Bank, said the year-over-year rise doesn't mean Utah is not following the national trend. Instead, it buttresses a common view that Utah entered the recession a year after the U.S. economic downturn began and will emerge sooner.
'Because we came into the recession later, our year-over-year comparisons would be a little less favorable, while the national housing market is a little further down the road in terms of stabilization,' he said.
'But Utah's economy is likely to bounce back a little quicker.'
There is still pain ahead. Nationally, more than 15 percent of homeowners with a mortgage have missed at least one payment or are in foreclosure, a record for the 10th straight quarter.
Moreover, the number of borrowers who were at least three months behind continues to soar. More than 5 percent of borrowers fell into that category in the fourth quarter, up from 4.4 percent in the third quarter.
In Utah, 11.9 percent of mortgage-holders were delinquent or in foreclosure during the fourth quarter. That's up slightly from 11.4 percent in the July-though-September period. A year earlier, 7.9 percent of borrowers were in those categories.
Foreclosures have been rising steadily in Utah, from 1.8 percent in the final months of 2008 to 3.3 percent a year later.
The Associated Press contributed to this story
States with the highest, lowest foreclosure rates
Florida » 13.4 percent
Nevada » 9.8 percent
Arizona » 6.1 percent
New Jersey » 5.8 percent
Illinois » 5.6 percent
California » 5.6 percent
Ohio » 4.7 percent
Michigan » 4.6 percent
Hawaii » 4.5 percent
Maine » 4.4 percent
U.S. » 3.6 percent
Utah » 3.3 percent
Virginia » 2.1 percent
Missouri » 2.1 percent
Arkansas » 2 percent
Nebraska » 2 percent
Texas » 2 percent
Montana » 1.8 percent
South Dakota » 1.8 percent
Wyoming » 1.6 percent
Alaska » 1.4 percent
North Dakota » 1.1 percent
Source: Mortgage Bankers Association
Blog Archive2013-01-02 19:21:29
Park City Real Estate
Sounds of Freedom for Hill Air Force Base
Hill AFB could lose jobs with F-35 arrivals
Greece: Top 3 risks facing United States
Park City as one of the WORLD'S 25 best ski towns
Foreclosure Filings Hit Three-Year Low as U.S.
End of tax credit unlikely to deter most buyers !
Home sales rise more than expected
Utah's housing market: Good time for buyers, but f
Gov't unveils plan to shrink some home loans
Building Permits UP!
TAX CREDIT GUIDELINES
Home Tax Credit is ENDING!
Nab a real estate deal - while you still can
Mortgage delinquencies down in U.S., Utah
Is This the Safest House in the World?
FHA FLIPPING RULES
FHA suspends anti-flipping rules
NEW HOUSING NUMBERS
GREAT NEWS FOR INVESTORS & FHA BUYERS!
Latest Home Price Data Is Good News for Buyers
November home resales soar in SL County!
November home sales soar 7.4 percent
FHA home loans be more expensive?
Bad Time To Buy or Sell? You Sure?
Click here to see ALL articles.