The troubled housing market was marked by record foreclosures, which is why economists closely watch the rate at which homeowners are late on their payments -- they're a precursor to foreclosures. Nationwide, the delinquency rate on mortgages peaked during the last three months of 2009 at 6.89%, after rising 12 quarters in a row from 1.49% in 2006.
As of the latest quarter, the delinquency rate dropped to 5.41%. And for 2013, it's expected to continue dropping -- albeit, slowly, to around 2%. Much of the late payments are made up of existing borrowers more than a year late on their payments, as opposed to new borrowers following stricter lending standards. Some of the biggest declines are expected in Nevada, Minnesota, California and Arizona.
My Local Observations
- Maryland slowed up the foreclosure process
- Foreclosures will continue to be part of our inventory
- Short Sales (a foreclosure alternative) will be more common
Cheers!
Boyd
Based on an article from CNN Money Watch
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