The consumer lending market, including mortgages, will fully recover from the financial crisis by the end of 2016, according to a forecast by TransUnion.
The national rate of serious delinquencies on mortgage loans will fall from 2.5% at the end of this year, to 2.06% at the end of 2016, TransUnion said. Mortgage delinquency rates peaked at 6.94% in the first quarter of 2010.
"Both the mortgage and credit card markets are performing extremely well, with increased consumer participation and continued low delinquency rates," said Ezra Becker, vice president of research and consulting in the financial services unit at TransUnion.
"Despite the fact that more consumers — and more nonprime consumers — are entering the housing market, delinquency levels have remained in check and balances are growing," he said.
Average mortgage debt per borrower has also steadily risen in recent years, partly due to a rebound in housing prices.
"This is a clear indicator that housing prices are recovering and consumers are gaining access to more mortgage loans," said Steve Chaouki, head of TransUnion's financial services business unit.
