Mortgage Delinquencies Down but Not Over
Even though mortgage delinquencies are on the downside the occurrence of this phenomenon is not over. Since mortgage delinquencies are directly tied to the economic climate the existence of delinquent mortgages will not decrease completely until other variables have been addressed. Reports show that mortgage delinquencies have decreased in the last year, this can be explained by the higher standards required by lenders. Since the recent economic downturn creditors are only approving more secured loans. This results in less people qualifying and less loans being approved, which also leads to fewer delinquent mortgages. However, there is room in the housing market for buyers looking to purchase great properties at reasonable prices due to foreclosure and mortgage delinquencies. Mortgage delinquencies are decreasing, but they are still evident in the housing market.
Reports show that mortgage delinquencies are still more than three times more prevalent in today’s economy than in past more stable times. Even though the economy is slowly becoming more stable, there are still eleven million homes underwater in debt and more than eight years of backlogged homes in foreclosure. Therefore, the prices of homes are far lower than previous highs and still have room to fall. This results in an economic environment that is perfect for purchasing homes. Although the economy is slowly getting back to normal it is not there yet. There are still many homes on the real estate market that are being sold for far less than there actual worth. Not every home is a great buy, but there is opportunity to make a smart purchase that will result in financial success. However, you must know what to look for when buying a home in today’s uncertain economy.
Homebuyers looking for the best investment should consider different variables that will assist them in making the best purchase. This includes comparing the price of similar homes over the same period of time and also evaluating the local job market. Affordability and local government finances should also be considered to help you find the best buy. Some real estate markets are even returning 25 percent price gains and the home crisis is not over quite yet. Although these price gains will decrease as mortgage delinquencies drop, it is still beneficial to pursue the real estate market looking for investment properties that will yield great future financial gains.