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Among the overdue auto loans in the study, the late-payment rate fell to 0.88 percent last year, down from 1.34 percent in 2009, the firm said. The study also compared the spread between late-payment rates for mortgages and credit cards to changes in U.S. home prices over the same period. It found that in markets like Los Angeles, where home prices saw a pronounced drop following a sharp upswing during the housing boom, there was a bigger gap in late-payment rates between mortgages and credit cards than in markets like Dallas, where home values were more stable, by comparison. That suggests homeowners who saw the value of their homes decline sharply were less inclined to miss credit card payments at the expense of paying their home loan on time. Overall, homeowners are doing a better job of making timely mortgage payments. The national late-payment rate on home loans in the second quarter sank to the lowest level in five years. The last time the mortgage-delinquency rate was lower was the third quarter of 2008, a time when home prices were sliding and the U.S. economy was in recession. Even so, the mortgage-delinquency rate is still above the 1 percent to 2 percent average historical range, an indication that many homeowners still are struggling to make their payments.
[Associated
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