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Fewer people may be relocating as mortgage delinquencies fall for first time in three years

May 10, 2010 - In a sign that the real estate industry may be coming back from the economic downturn, a new report finds mortgage delinquencies fell during the first quarter of 2010 - the first such decline in 12 quarters.

The analysis from TransUnion also found that the amount Americans owe on their home is declining, with the average mortgage debt per borrower falling from $195,500 in the first quarter of 2009 to $192,774 for the first three months of this year.

But F.J. Guarrera, vice president in TransUnion's financial services business unit, says the drop in delinquencies might be short-lived, meaning some homeowners might need to consider moving soon.

"Part of the first-quarter demand for new homes was fueled by the first-time homebuyer credit, which was extended to April 30, along with the provision allowing some current home owners to also qualify," he said. "Once this runs out, we could see some impact on mortgage demand and therefore home prices - all other things remaining equal."

It also seems that some areas which people were moving into during the housing boom will continue to face difficulty. According to recent statistics from the National Bankruptcy Research Center, Nevada leads the nation in bankruptcy with more than twice the national average.

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