Millennial Mortgage borrowers under the age of 30 have the lowest mortgage delinquency rate of any other age group, according to a newly released TransUnion mortgage report. However, the age group also makes up the smallest share of all mortgage accounts at 4.16 percent, TransUnion notes.
“It is encouraging to see younger borrowers perform well, since their generation was significantly impacted by the recession and their loans are among the newest,” says Steve Chaouki, head of financial services for TransUnion. 
Overall, the mortgage delinquency rate – the percentage of borrowers 60 days or more delinquent on their mortgages – fell for the 10th consecutive quarter to 3.46 percent in 2014’s second quarter, TransUnion reports. The mortgage delinquency rate has fallen nearly 20 percent in the past year.
The 50–59 age group has the largest share of mortgage accounts, at 27.09 percent. The breakdown by ages as of the second quarter of this year showing mortgage delinquency of 60 days or more are:
- Under 30: 2.34%
- 30-39: 3.91%
- 40-49: 4.43%
- 50-59: 3.46%
- 60+: 2.58%
“Mortgage delinquency rates continue to drop and we are seeing this decline across all age groups,” Chaouki says. “Overall, the improvements in the mortgage delinquency rate can be attributed to a number of factors. These include the clearing of severely delinquent accounts through foreclosure as well as a lower rate of new delinquencies from post-recession vintages, which generally are of significantly higher credit quality and have experienced much better performance than mortgages originated before the recession. This dynamic is likely driving the low delinquencies among younger borrowers.”
All 50 states, as well as the District of Columbia, posted declines in the mortgage delinquency rate in the past year. The major markets that saw some of the largest yearly drops in mortgage delinquency rates are:
- San Francisco: -29.3%
- Phoenix: -28.7%
- Miami: -26.7%
- Los Angeles: -24.1%
- Chicago: -20.6%
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Source: TransUnion
