Blog
Weekly Market Update
1/19/2024
π‘ News for Homeowners for Future Homeowners! π‘
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:
β Conventional and FHA delinquency rates are below pre-pandemic levels.
β VA loan rates are slightly higher but improving.
β FHA loans historically higher but show a significant year-over-year drop.
β 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! π π
If you have specific questions about the Southern California real estate market, feel free to ask! π‘π
Cheri Jacques
www.RealtorCheri.com
Capitis Real Estate
DRE: 02164097