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Weekly Market Update

1/19/2024

🏡 News for Homeowners for Future Homeowners! 🏡

The US serious mortgage delinquency rate is at its lowest since 1999! According to the CoreLogic Loan Performance Insights report, the overall delinquency rate is 0.9% in October 2023, down from 1.2% the previous year. Thanks to low unemployment and mortgage modification programs, serious delinquencies have declined across all loan types.

***But what does this mean for the first time homebuyer?***

For a first-time homebuyer, the current low serious mortgage delinquency rates are generally positive news.

Interest Rates: With the historically low delinquency rates, it's likely that interest rates will remain favorable. This can make it more affordable for first-time buyers to secure a mortgage with lower interest payments.

Market Stability: The overall stability in the mortgage market suggests a healthier and more predictable environment for homebuyers. Lenders may be more confident in extending loans, and there's less likelihood of sudden market fluctuations impacting the ability to secure a mortgage.

Financial Security: Low serious delinquency rates indicate that most homeowners can afford their monthly payments. This suggests a financially stable environment, which is beneficial for first-time buyers as they enter homeownership.

Government Loan Programs: The report mentions specific delinquency rates for FHA and VA loans. First-time buyers often utilize these government-backed loan programs. The improvement in delinquency rates for these loans is a positive sign, making these programs potentially more accessible and attractive.

Key Highlights:

✅ Conventional and FHA delinquency rates are below pre-pandemic levels.

✅ VA loan rates are slightly higher but improving.

✅ FHA loans historically higher but show a significant year-over-year drop.

✅ Homeowners with low interest rates and strong job growth are staying current on payments.

It's reassuring to see that most US homeowners can afford their monthly payments. Cheers to a stable housing market! 🏠📉

If you have specific questions about the Southern California real estate market, feel free to ask! 🏡🔑

Cheri Jacques

www.RealtorCheri.com

Capitis Real Estate

DRE: 02164097