Transunion, one of the three credit reporting bureaus, predicts that the housing market recovery is almost over. In fact, the company recently released a 2016 mortgage market forecast for 2016 that reveals asserts that the “mortgage market will return to its pre-crisis state by the end of 2016.”
The company is basing its predictions on the national mortgage loan delinquency rate. This number is calculated by the ratio of people who are 60 days or more delinquent on their mortgage payment schedules. The current national delinquency rate is 2.5 percent. Transunion says that figure will drop to 2.06 percent by the end of next year.
These are quite positive statistics when you consider that the mortgage delinquency rate was as high as 6.94 in the beginning of 2010. The report shows that the statistic has been on a steady decline for each quarter since the height of the housing crisis.
Head of Transunion’s financial services business unit, Steve Chaouki pointed out that the a normal mortgage delinquency rate 1.5 and 2 percent. This puts the company’s prediction of 2.06 percent by the end of 2016 in line with real market recovery.
Chaouki pointed to moving the “bad loans” through the foreclosure process, lower unemployment and rising housing prices as reasons for the recovery prediction.
With all of this news in hand, now is a great time to get out there and buy the home of your dreams or sell the one you have and move on to the next stage in your life. Whatever you do, make sure you choose real estate professionals who can properly advise you every step of the way.
Joel R. Spivack, Esq. has been helping families buy and sell homes in the Cherry Hill, NJ community for over 25 years. He will protect your investment and safeguard your rights. Call him today for a free phone conversation about your real estate transaction.