More Chicago Homeowners are Paying their Mortgages on Time

November 22, 2012

new chicago homes and mortgagesDuring the third quarter of 2012, the percentage of mortgage holders more than two months behind on their payments fell by 5.41 percent, according to TransUnion. This is the lowest rate since 2009, which is great news for the housing recovery.

Though, the percentage is still higher than the 1 percent to 2 percent average that occurred before the housing bubble burst, and there are still many homeowners struggling with their mortgage payments. Before the housing crash, many homeowners would pay their mortgage first, but now they are now turning their attention towards paying off credit card and auto debt.

U.S. home prices rose 5 percent in September, which is making it easier for homeowners to refinance their mortgage payments. The improving job market has also been beneficial for homeowners. The economy has gained an average of 173,000 jobs a month since July and more than 171,000 jobs were added in October.

Mortgage interest rates remain at an all-time low. The average rate on a 30-year mortgage is 3.40 percent, and it has been below 4 percent for most of 2012.

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