Delinquent mortgages continue years of improvement
Posted on Monday, February 3, 2014 at 10:03:38 AM
When it comes to residential financing, there are a number of indicators as to whether or not this segment is healthy. One such sign is delinquent mortgages, and a recent industry report has found that these have experienced continued improvement over the past several years.
According to data and analytics firm Black Knight Financial Services, 2013 was the fourth year in a row where delinquent mortgages saw sustained improvement. At the moment, this statistic is only 1.5 times the pre-crisis level, while foreclosure inventory also dropped significantly.
Herb Blecher, senior vice president of Black Knight Financial Services' Data & Analytics division, stated that 2013 signaled relief for the mortgage market, with a large number of positive trends and other encouraging signs.
Of note from the report was the total U.S. loan delinquency rate, at 6.47 percent, and the total U.S. foreclosure presale inventory rate, at 2.48 percent. States with the lowest percentage of non-current loans included Montana, Colorado, Alaska, South Dakota and North Dakota.
Even with these upward trends in residential financing, the housing market as a whole may be experiencing some headwinds, according to The Wall Street Journal. Home sales slipped by the end of 2013, and construction levels also declined slightly. However, much of the new year's growth hinges upon this segment, and some experts do expect builders to experience increased activity as 2014 progresses.