Positive economic trends emerge in the housing market
Posted on Wednesday, July 23, 2014 at 9:57:08 AM
Given the housing market's recent ups and downs, it is understandable that many potential homebuyers are hesitant about jumping into ownership.
However, many new trends have emerged that indicate a positive turn of events. According to Black Knight Financial Services, the foreclosure inventory has reached its lowest level since the spring of 2008. That means more people are making their monthly residential financing payments on time.
In addition, foreclosure starts were down 19 percent in June compared to the same time last year, the financial company explained. The mortgage delinquency rate also ticked down on a yearly basis, with June's level 15 percent below figures noted in June 2013.
In addition, Freddie Mac's recent U.S. Economic and Housing Market Outlook in July indicated that trends are moving in the right direction as the second half of 2014 gets underway.
"Although the economic news for the first half of 2014 has been bittersweet, there is good news to share as we head into the latter half of summer," Frank Nothaft, chief economist and vice president at Freddie Mac, said in a statement. "In particular, employment was up by nearly 1.4 million during the first six months and this will bolster household formations, resulting in positive gains most immediately for the rental housing market and then, longer term, for single-family home sales."