American borrowers continued to improve the U.S. mortgage crisis in July, as delinquency rates dropped, according to Equifax.
The credit reporting agency's National Consumer Credit Trends Report showed delinquency rates on first mortgages 30 days or more late dropped 15 percent from last July, while first mortgage severe derogatory balances fell 17 percent.
"The decline in mortgage debt is due to loans converting to real estate owned at the end of the foreclosure process, homeowners paying down debt faster through cash-in refinancing, or shortening of the mortgage term as well as borrowers curtailing the debt by adding a bit extra to their payment each month," said Amy Crews Cutts, Equifax chief economist.
Borrowers also improved on auto loan, credit card, consumer finance and home equity payments. However, student loan delinquency rates increased 14 percent from last July.
Student loan debt is expected to have a croppling effect on young Americans' ability to buy homes, according to a report from the Young Invincibles. The analysis said that about half of their income would be spent on mortgage, student loan, credit card and car payments, which would make them unqualified for most home loans.?
This entry was posted on Monday, August 27th, 2012 at 3:00 am and is filed under Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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