The last few years have been quite rough on homeowners, lenders and the overall housing market. Now that the foreclosure crisis has begun to slow down, many have begun to experience some hope for industry recovery. Further reports this week bring good news as the rate of mortgage delinquencies are now the lowest they have been since 2008.
Signs Of Hope
Good news in the mortgage lending industry is hard to come by these days. Although no one is jumping for joy quite yet, the first quarter report of mortgage delinquency rates does give hope that the market could be headed for a turnaround. Once hovering over 10 percent, the current mortgage delinquency rate has dropped to 7.4 percent; less than a half a percent different from its rate in 2008.
The decrease in delinquency rates combined with the slowing foreclosure rates, low interest rates and lower home prices could be just what the market needs to stimulate demand. However, the current backlog of foreclosures and increase in short sales continue to drag down the speed at which recovery could be seen if these factors were eliminated. Only time will tell whether the real estate market will ever return to its former days of glory. For now, focus continues to be on further reducing delinquency rates and helping distressed homeowners.