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Mortgage Delinquencies at Historic Lows Amidst Housing Market Pressures

In a housing market burdened by soaring mortgage rates and escalating home prices, a recent study reveals that many Americans are remarkably staying on top of their housing payments. According to the latest data from CoreLogic, only 2.6% of all mortgages in the United States were delinquent in June, maintaining a historic low. Furthermore, no state experienced an annual increase in delinquency rates during that month.

June’s Mortgage Delinquency Trends

However, it’s essential to note that CoreLogic’s data does not account for recent natural disasters. According to Molly Boesel, Principal Economist at CoreLogic, “Mortgage delinquencies typically increase about one month following disasters.” In affected areas, delinquency rates can remain elevated for months, progressing from early-stage to serious. For example, two communities along Florida’s Gulf Coast continued to report annual increases in serious delinquency rates in June, nine months after Hurricane Ian wreaked havoc in September 2022.

Nonetheless, experts are optimistic that mortgage delinquency rates will likely remain at historic lows for the remainder of the year. CoreLogic’s report suggests that fewer states and metropolitan areas are seeing year-over-year delinquency increases, indicating a positive outlook for both employment and mortgage performance in 2023.

Finding the Best Mortgage Rate

For those considering homeownership, finding the best mortgage rate is still achievable through careful comparison. Credible offers a platform where you can explore options from various lenders without affecting your credit score.

Home Affordability Challenges Persist

Despite mortgage delinquency rates staying at record lows in June, the issue of home affordability continues to plague potential homebuyers. According to a separate study by CoreLogic, annual home prices saw a 1.6% increase in June, marking the 137th consecutive month of year-over-year gains. This uptick follows a 1.5% growth in May, breaking a 13-month trend of slowing price growth.

The median home price in June stood at $376,000. Here, we delve into the areas with the highest average home prices.

Resilient Economy and Rising Home Prices

Recent trends in home prices may reflect the resilience of the economy in the face of high inflation and increasing interest rates, according to experts. Selma Hepp, Chief Economist at CoreLogic, explains, “While the ongoing mismatch between supply and demand continues to exert pressure on home prices, the annual rise in price growth for June underscores economic resilience, a robust U.S. job market, and strong consumer spending.” Additionally, higher mortgage rates are impacting affordability for buyers with loans, but nearly four in ten sales are all-cash transactions. Moreover, many baby-boomer homeowners possess substantial equity, potentially adding to the pressure on prices in areas where this generation is relocating.

Exploring Mortgage Options

If you’re contemplating homeownership, it’s advisable to compare mortgage options diligently to secure the best rate. Credible offers a convenient way to obtain your personalized rate within minutes.

Finding Affordable Homes Nationwide

While high home prices have remained stable in recent months, opportunities for homebuyers to find affordable deals exist throughout the country. Agent Advice, a real estate company, conducted a study to identify the most affordable states to buy a home and their corresponding typical home prices.

According to Agent Advice, West Virginia boasts an average home price that is 57% less than the national average of $338,649.

Affordability Trends in Multiple States

Agent Advice’s report highlights an overall increase in housing costs over the past three years across the nation. However, it also reveals depreciation in several states over the last two years, signifying a rise in more affordable housing options. For instance, in Louisiana, typical house prices have decreased by 8%, equating to a $15,648 reduction within the last two years. This trend sparks curiosity about whether the cost of housing will eventually decrease nationwide.

Choosing the Right Mortgage Lender

If you’re ready to embark on your homeownership journey, it’s prudent to compare different mortgage lenders to secure the most favorable offer. Connect with a mortgage expert through Credible to have your questions answered and gain valuable insights.

In summary, despite the challenges posed by high mortgage rates and home prices, the mortgage delinquency rates in the United States have remained impressively low. Homebuyers and potential homeowners can still navigate this dynamic market by exploring mortgage options, and those seeking affordability should consider the opportunities presented in various states across the nation. The housing market, while facing pressures, continues to reflect the resilience of the American economy.

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