The national foreclosure rate has fallen to the lowest levels seen in two decades following housing reports from July 2019. Financial experts believe this drop is due to a stronger job market and a lower unemployment rate.
According to Bureau of Labor Statistics, the national unemployment rate fell to a 50-year low of 3.5 percent as of September 2019 with 136,000 jobs being added to the market. In addition, the hourly earning for all employees has gone up 2.9 percent from the prior year. As Americans have more money to spend, the chances of them falling short of meeting their monthly expenses also goes down.
A recent CoreLogic study reported that the number of mortgages in foreclosure fell to 0.4 percent, as compared to 0.5 percent from the previous year. In addition, the mortgage delinquency rates also fell. Delinquent mortgages are those that are 30 days or more overdue. Delinquent mortgages went down to 3.8 percent, as compared to 4.1 percent in 2018.
These numbers are the lowest seen in the housing market for 20 years. CoreLogic’s report indicates that these rates will likely dip even lower in the upcoming months as wages increase and lower mortgage rates encourage more consumers to purchase homes.
The lower mortgage rates allow borrowers to qualify for bigger mortgages, thus increasing the equity held by existing homeowners as home values increase. Currently, the average equity per mortgage is at $176,000. In comparison, the average equity per mortgage reported in the second quarter of 2011 was only at $75,000. As home equity increases, the risk of foreclosure lowers, which could be another reason why foreclosure rates are currently so low.
Serious mortgage delinquencies are also down. A serious delinquency involves mortgages that are 90 days or more past due. Serious delinquencies have decreased, except for Minnesota, Iowa, Nebraska, North Dakota, and South Dakota, all of which stayed the same from the previous year.
Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
Source: Housing Wire