Amount of Late Mortgage Payments in Dallas Decreases

Homeowners who took on the responsibility of a mortgage after the housing bubble burst are doing a much better job of staying on top of their payments.  With rising interest rates and home prices becoming more of a reality each day, it seems the local economy and job markets have caused the number of delinquent mortgage payments to decrease.

A big part of the decreasing number of late payments on mortgages is the recent job growth the country—and Dallas, Texas in particular—has seen in the past few months.  Also, homeowners that have been able to take advantage of low interest rates by refinancing their Dallas home are enjoying their lower interest and monthly payment afforded by their favorable rate, making the monthly payment less of a burden.  Until this point, the current rate of delinquency and late payments on mortgages was similar to those rates that were seen in December 2008, when many new home buyers with less-than-favorable credit were taking out mortgages with adjustable rates and were in the process of being reset at higher rates.

With lending guidelines having been tightened and historically low fixed interest rates, buyers and homeowners are paying their mortgages on time and as promised.  While adjustable rate mortgages and flexible credit guidelines are still available, the majority of mortgages are being made to people that have proven their ability to repay, a noticeable shift from just 5 years ago.

According to Tim Martin, group vice president of U.S. Housing for TransUnion, loans taken out for homes in 2008 make up 60% of all home mortgages currently being paid, and also account for 90% of the national mortgages that are over two months late.  Martin says, not a lot of new homeowners are late on their mortgages—it’s mostly people who have been delinquent on payments for quite a while.  However, the economic and job growth in the Dallas area have offered some relief, helping drive mortgage delinquencies to some of the lowest levels in the country.

If you have any questions or comments regarding mortgage trends in the Dallas area, please feel free to contact us.  We’d be happy to assist in answering all questions you have pertaining to mortgages and real estate in Dallas and its surrounding areas.