Signs of improvement continue in the national mortgage market, with the second quarter of this year ushering in the highest year-to-year growth in near and subprime originations and the third quarter seeing delinquency rates fall, according to TransUnion’s recently released Industry Insights Report.
Originations overall, the Report shows, grew to 1.99 million in the second quarter of this year, up 3.7 percent from last year. Near prime originations grew to over 262,000 in the second quarter, up 5.7 percent to its highest level since the recession, while subprime originations grew to approximately 64,000, up 10.9 percent. The delinquency rate (60 days past-due) dropped by 8.4 percent in the third quarter.
“Mortgage originations have experienced steady growth across all risk tiers, and these new milestones in subprime and near prime account originations reflect growing credit access across the risk spectrum,” said Joe Mellman, vice president and mortgage business leader at TransUnion, in a statement on the Report. “While access has grown, it’s important to note that the subprime share of originations was only 3.2 percent, and the near prime share was 13.2 percent of all originations. We do not see a cause for concern.”
Balances, in addition, grew 1.7 percent in the third quarter, according to the Report, up to $8.39 billion. Average debt in the third quarter was $193,489, up from $189,428 the year prior.