by Calculated Risk September 16, 2024 11:24 AM
Today’s Calculated Risk Real Estate Newsletter: Second Quarter Update: Delinquencies, Foreclosures and REOs
Short excerpt:
we will do not have As happened after the housing bubble, we are likely to see a surge in foreclosures that will have a major impact on home prices for two main reasons: 1) mortgage lending is strong, and 2) most homeowners have significant equity in their homes.
…For mortgage rates, we have data from FHFA’s National Mortgage Database showing the distribution of interest rates on closed-end fixed-rate one- to four-family mortgages outstanding as of the end of each quarter from Q1 2013 through Q1 2024 (Q2 2024 data will be released in two weeks).
This reflects a sharp decline in mortgage rates during the pandemic, which has led to a sharp increase in the percentage of loans below 3% and even 4% since the beginning of 2020. Now, 21.9% of loans are below 3%, 57.3% are below 4% and 76.0% are below 5%.
With ample equity and low mortgage rates (most of which are fixed), homeowners are less likely to get into financial difficulties.
There’s a lot more in the article.
