MORTGAGE DELINQENCY COULD BRING HOME SELLERS
The housing market has had very low inventory for many months now. Higher prices and higher interest rates have created a huge affordability problem. The fourth quarter of 2023 statistics show delinquent payments on home mortgages was up over the previous quarter.
Delinquent home loans rose to a seasonally adjusted rate of 3.88% of all loans outstanding at the end of Q4 2023, up from 3.62% in the previous quarter according to MBA’s National Delinquency Survey.
Three points of data, median home prices up, delinquent mortgages up, and rent prices down; could point to an increase in homes for sale. Rental rates have been going up and up for a few years and we have finally seen some leveling off and decreases in rent. According to Apartment List Rent Report.
Homeowners who are delinquent may make a financial decision to sell now, grab their equity, pay down their debts, and become renters. It’s not an easy decision to make but may be the perfect solution to solve their ability to stay upright in our inflationary times.
