Mortgage delinquencies in the US increased to 6.01 percent in Q4 last year, from 5.88 percent in the preceding quarter, according to credit data giant TransUnion.
The rise in delinquencies came after nearly two years of a decline.
“To see that, quarter over quarter, fewer homeowners were able to make their mortgage payments is not welcome news,” remarked Tim Martin, Group Vice President of US housing in TransUnion’s financial services business unit.
Martin stated that the increase was partly due to seasonal factors, “perhaps explained by borrowers balancing holiday spending versus debt payments.”
He also noted that declining home prices worsened negative equity, while reduced income and high unemployment “can affect borrowers’ ability and willingness to pay their mortgages.”
Mortgage delinquencies for Q4 2011 were smaller when compared with Q4 2010, which saw a rate of 6.41 percent.
“While it is certainly good to see the rate dropping, at this pace it will take a very long time for mortgage delinquencies to get back to normal,” added Martin.
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