Fam, its time for another market update! Mortgage delinquencies have continued falling by more than 11%. Early stage delinquencies in particular are now back at pre co-vid levels and foreclosure activity remains minimal. Amazingly, prepayment of mortgages have hit their highest month since 2004!!! These are all positive upturns.
Some things we have to watch out for are serious mortgage delinquencies that are 90 days or more past due have risen exponentially since pre-pandemic. It should be noted that a specific increase in foreclosures is actually on ‘non-owner occupied’ homes. AKA vacation homes. The Fed has also announced an outstanding new change to its policy strategy. It is going to allow inflation to increase and continue above 2% for an unknown extended period of time. This will affect rates, we’re just not sure how yet.
With all that considered, we can continue to appreciate the buffer being provided for those struggling during the pandemic at this time. Both Fannie Mae and Freddie Mac have agreed to suspend foreclosures until the end of the year giving homeowners even more time. We’re also noticing that homes for sale are going into escrow faster and faster! This is a seller’s market and people are buying!!! With most mortgage delinquencies being from mid-pandemic and housing selling like candy, we are seeing strong economic growth in a trying time.
If you’re looking to sell, NOW is your market! Thanks for checking in fam, I’ll be back with an update soon and in the meantime, keep your debts LOW!