Fewer Delinquent Mortgage Payments, Better for You
Reports out this week revealed that fewer U.S. homeowners are delinquent on their mortgage payments. The numbers indicate that the late-payment rate on home loans hit the lowest level in six years the third week in August, according to credit reporting agency TransUnion. All good news to report – in fact these latest mortgage delinquency numbers are down from the first quarter of this year, when they were at 3.61 percent.
Housing Market Recovery: It’s REAL
The steady decline in home payment delinquencies, which has been consistent over the past two years, indicates that the American housing market is absolutely in recovery. In case anyone is still leery of a housing bubble, and there are hold-outs, this fact — recovery that is— is further bolstered by the home sales rebounding while foreclosures are steadily declining. Newsday reports that the good news is due in part to a decline and slow elimination of the “bad” home loans of 2008 and earlier, many of which resulted in foreclosures. At this time, some of the delinquency improvement can be directly attributed to more and more of these “bad” loan accounts being closed—most of the homes from this era have been sold or foreclosed upon— and an improvement in job growth and the economy. For those who are still suspect, I should say that this was big enough news that all of the major reporting agencies picked it up as a lead story last week including the Associated Press. Notably, this is definitely not self-adulatory reporting from realty associations in an effort to promote home sales. These are real numbers.
What Does This Mean for Home Owners/Buyers?
What does this mean for you as a home owner or potential home buyer? Well, that’s the best part of this news. Mortgage rates are falling and home values are increasing as a result of fewer delinquencies. According to The Wall Street Journal in an article titled, U.S. Existing-Home Sales Up 2.4% in July, The National Association of Realtors released a statement last week. It read in part:
The U.S. housing recovery gained traction in July as sales of previously owned homes rose to their highest level in 10 months. Not only were sales last month at their highest level since last September, but fewer transactions came from short sales of underwater homes and foreclosures.
Chris Christopher, consumer markets expert at IHS Global, also spoke to Fox News Business last week in the wake of the recent positive reports. He said that many Americans have improved their finances now that we are out of the recession. making them more likely to make on-time mortgage payments. Added Christopher:
What you can see here are consistent improvements; American households are doing relatively better. Household net worth is improving and people who have been foreclosed on have worked their way through the system.
Christopher added that IHS predicts “disposable income will make strong gains in 2013” making everyone more financially comfortable.
Isn’t nice to read some good news for a change?
Lydia Gable is an experienced and respected real estate agent in Ventura and Los Angeles counties for over a decade. Lydia has been honored with the Platinum Award from Keller Williams International and a #2 Ranking Individual Agent in Keller Williams Westlake Village. Thinking of purchasing your dream home? Contact Lydia Gable today for consultation or call (818) 934-8902.