The mortgage delinquency rate declined significantly during the second quarter, as more borrowers managed to stay on top of their home loan payments.
Mortgage records indicate that the delinquency rate fell to just 5.49 percent during the three-month period, according to a report from TransUnion. Overall, the rate declined roughly 9 percent during the first six months of the year.
"While it is a positive sign to see mortgage delinquency rates decrease, meaning more and more homeowners were able to make their mortgage payments, the rate of the decline is still not at a pace that will push levels significantly closer to pre-recession norms," said TransUnion U.S. housing vice president Tim Martin.
Meanwhile, analysts from the company anticipate the delinquency rate to improve even more during the third quarter. This forecast comes after many consecutive months of home price gains experienced across the country. As more borrowers come out from under the thumb of negative equity, they could have much more flexibility with their home loans in the near future.
Additionally, record low mortgage rates and expansion of the Home Affordable Refinance Program could also play a significant role in fewer borrowers falling behind on loan payments, Martin added.