Statistics

Mortgage loan delinquency (ratio of borrowers 60 or more days past due) increased for the sixth straight quarter, hitting a national average high of 3.53 percent for the second quarter of 2008. Traditionally seen as a precursor to foreclosures, this statistic is up more than nine percent from the previous quarter's 3.23 percent average and up approximately 51 percent from the same period last year.

Mortgage borrower delinquency rates in the second quarter of 2008 were highest in Nevada (6.63 percent) and Florida (6.47 percent) while the lowest mortgage delinquency rates were found in North Dakota (1.10 percent), South Dakota (1.5 percent) and Montana (1.54 percent). On a positive note, six states dropped in mortgage delinquency from the previous quarter: Missouri, Kansas, Nebraska, North Dakota, New Hampshire, and Montana. Nebraska dropped the most by 6.67 percent from 1.65 percent to 1.54 percent.

Average national mortgage debt per mortgage borrower rose slightly (0.4 percent) to $192,681 from the previous quarter's $191,917 total. However, the second quarter 2008 average represents a 3.35 percent increase compared to the second quarter 2007 average of $186,432.

The area with the highest average mortgage debt per borrower was California at $361,988, followed by the District of Columbia at $355,875 and Hawaii at $304,096. The lowest average mortgage debt per mortgage borrower was in West Virginia at $94,765. Quarter to quarter, Montana showed the greatest percent increase in mortgage debt (5.38 percent), followed by Idaho (2.62 percent) and South Dakota (2.38 percent). Areas showing the largest percentage drop in average mortgage debt were Georgia (-1.32 percent), Florida (-1.11 percent), and the District of Columbia (-1.04 percent).

Analysis

The market continues to see the effect of the mortgage crisis across the country as delinquency rates again increased over the previous period. The three areas showing the greatest percentage growth in delinquency from the previous quarter were Wyoming (28.3 percent), Oregon (23.5 percent) and Florida (20.2 percent). A number of states such as Montana, New Hampshire and North Dakota actually experienced a drop in borrower delinquency ratio over the previous quarter: (-6.6 percent, -6.5 percent, and -6.0 percent, respectively).