Mortgage Providers are seeing fewer Delinquencies

Is the housing market finally taking a turn for the better?  Recent mortgage data seems to suggest so.  Less Americans are falling behind on their mortgages.  In fact, the most recent stats show the lowest levels of “no payments” in 2 years.  While many people might perhaps blame the good news on the recent government crack down on the “robo” signing  problem the banks were caught abusing, some economists believe the good news is based on a recovering economy.  Whatever the reason, it is a bit of good news in a housing market that has been beaten down for years. 

The US Mortgage delinquency rate fell 10 percent in the 4th quarter in 2010 to 8.22 percent, based on info provided by the Mortgage Bankers Association’s. By historical standards, that is still a high rate but a massive improvement over recent years since the crash began.  Another strong indicator of an improved housing market is the improved quality of the mortgages that are currently being serviced.   All of those high risk mortgage loans that have been tearing the housing market apart for so long now seem to have washed through the market.  What is left of course are the high quality loans that have a much lower risk of default.  

Will the housing market ever take off again?  Well I think that can be summed up in one word:  jobs.  As the unemployment rate goes down and more people get back to work, the housing market will pick up demand and new buyers will enter the market and prices should start to scale upward.  Mortgage rates are still at highly attractive levels and the affordability of homes is at an all time high.  Hopefully more good news will come soon in the mortgage market.