PERSPECTIVE MATTERS. FOR EXAMPLE, WHAT’S THE MORTGAGE DELINQUENCY RATE?
March 3rd, 2009 categories: Mortgage & Finance, Real Estate Psychology
One of life’s enduring lessons is that perspective matters. By perspective I mean the way in which we look at, analyze, interpret, and come to make sense of the world around us.
The current coverage of our national economic trials and tribulations is a case in point. You are unlikely to hear that 95.42% of home owners were not delinquent on their mortgages. But you will hear that 4.58 % of homeowners are delinquent. Both are significant numbers. They both move the mind in a direction that provides a perspective.
The report comes from TransUnion and states that 4.58 percent of American homeowners were at least 60 days past due on mortgage payments last quarter. The study is based on anonymous data from its national credit database
TransUnion also indicates that mortgage delinquencies are up 53% when compared to data from a year ago.
Another part of perspective is to consider the facts behind the stats. For example, in looking at TransUnion’s data for the 5 largest states in the Union, it’s apparent that the national delinquency numbers are being skewed by California and Florida. New York and Texas, for example, exhibit delinquency rates below the national 4.58 percent marker.
Then there is North Dakota. Its delinquency rate is about 1 percent.
When you hear these numbers think about the purpose of headlines and lead stories. Their function is to attract attention. They sensationalize. They tend to channel emotions away from anything resembling a wise perspective. And in the process the facts behind the numbers get thrown overboard.
(Image courtesy: TransUnion)
