Positive Economic Outlook Continues as Mortgage Delinquencies Decline
Are you debating about when the best time will be to enter the real estate market? If you’re ready to purchase a new home in metro Atlanta, many experts believe that now is still an excellent time to become a homeowner! The country’s positive economic outlook is continuing as mortgage delinquency rates, foreclosures and mortgage interest rates have all fallen recently.
The Mortgage Bankers Association’s National Delinquency Survey looked at residential mortgage loans for one to four-unit properties in the first quarter of 2014. For the purposes of this survey, a loan is considered delinquent if it has at least one payment past due. However, foreclosures were not considered in the metric.
The survey showed that the delinquency rate for assessed properties dropped to a seasonally-adjusted 6.11 percent, which is the lowest level seen since the end of 2007. Compared to the fourth quarter of 2013, the delinquency rate fell 28 basis points. The year-over-year decline was even greater, as the rate fell a whopping 114 basis points.
The number of homes actively in foreclosure has also seen a significant decline. At the end of the first quarter of 2014, the share of mortgages in the process of foreclosure sunk to 2.65 percent. This is 21 basis points lower than in the fourth quarter of 2013 and 90 basis points lower than the first quarter of 2013, making the foreclosure inventory rate the lowest it’s been since the first quarter of 2008.
“We are seeing sustained and significant improvement in overall mortgage performance,” said Mike Fratantoni, chief economist for the MBA. “A more stable and stronger job market, coupled with strong credit standards on new loans, has kept delinquency rates on recent vintages low, while the portfolio of loans made pre-crisis is steadily being resolved.”
Mortgage rates sunk to a six-month low last week after hitting their lowest level of 2014 the previous week. According to Freddie Mac’s Primary Mortgage Market Survey, for the week ending May 15, the rate on a fixed 30-year mortgage fell to 4.2 percent. The 15-year fixed-rate mortgage averaged 3.29 percent, down from 3.32 percent the previous week. These rates, which are still at historic lows, make now the perfect time for home buyers to purchase a new home in metro Atlanta.
If you are ready to begin your new home search in the Atlanta area, be sure to contact Academy Mortgage to learn about your mortgage loan options. Contact Academy’s Atlanta branch by calling 404-574-2600 or visit www.AcademyMortgage.com/Atlanta.
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