Mortgage delinquency rates trending down
Good news for the housing market with mortgage delinquency rates trending down. While the numbers are still well above average (and that is not unexpected), at least they are heading in the right direction.
Fannie and Freddie report similar trends. Fannie reports delinquencies at 4.14 percent in May 11 down from 5.15 percent in May 10 and 5.59 percent at the peak in February 10 while Freddie reports a 3.53 percent delinquency in May 11 down from 4.06 percent in May 10 and 4.20 at the peak in February 10.
Solid job creation is the solution to the housing mess so until you start seeing good job growth, I would expect it to take some time for the inventory of distressed (and potentially distressed) properties to be absorbed.
Chart courtesy of Calculated Risk (source Lender Processing Services)
