Housing Chartbook Depicts Improvements in Post-Crisis Market by Kendall Baer

The Urban Institute recently released their monthly chartbook, and along with it data on the latest mortgage delinquency and foreclosure trends.It came as no surprise that these rates continued to decline after the unprecedented levels seen following the housing crisis. Despite this positive trend, Urban Institute reports that these rates are still relatively high compared to those of pre-crisis in the early 2000’s.

“Loans 90 days delinquent or in foreclosure totaled 3.0 percent in the third quarter of 2016,” said the report, “down from 3.6 percent for the same quarter a year earlier.”

In addition to the nationwide rates, seriously delinquent rates for GSE loans also declined. The chartbook noted that as of September 2016, 1.24 percent of the Fannie Mae portfolio and 1.02 percent of the Freddie Mac portfolio were seriously delinquent. This was a decrease from 1.59 percent for Fannie Mae and 1.41 percent for Freddie Mac from the year prior, according to the report.

Alongside the decline in GSE seriously delinquent loans, FHA and VA loans also fell down lower.

“GSE delinquencies remain higher relative to 2005-2007, while FHA and VA delinquencies (which are higher than their GSE counterparts) are now at levels lower than 2005-2007,” said Urban Institute.

With the decline in delinquencies  decline in permanent loan modifications, which is another sign of market recovery. Broken down even further, the data from the chartbook reports that the number of active permanent modifications declined by 1,928, making this quarter the third consecutive quarter.

“Fewer new permanent modifications were made, some modifications failed because the borrowers did not make their payments, and a small number of borrowers either paid off their mortgage or withdrew their application,” said the report. “As a result, active permanent mods declined to 0.98 million.”

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