Fewer U.S. homeowners are falling behind on their mortgage payment. The trend brought down the national late-payment rate on home loans in the third quarter to 4.09 percent, a five-year low. It is estimated that the national mortgage delinquency rate will continuously drop to under 4 percent.

In my opinion, lower  late-payment rate on mortgages shows that U.S. economy is recovering from the 2008 financial crisis. The bank is slightly lowering the credit requirement of loan. This is beneficial to the people who have the rigid demand for housing.

What’s more, the lowering the credit requirement of loan caused by the dropping mortgage delinquency  rate will also benefit the business. More company is likely to invest in real estate, making it easier for people who are not so rich  to buy a house. Also, the fundraisers of the start-ups will feel less challenging when applying for a bank loan. More start-ups will provide more jobs, pushing higher the employment rate. Thus, more and more people are able to afford a house or pay off the debt.

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Reference: http://finance-commerce.com/2013/11/late-payment-rate-on-mortgages-down-in-3q/