Delinquencies on the Decline!

Today it was reported by Freddie Mac that they have seen a decrease in the number of loans that are more than 90 days delinquent on their payments for the third consecutive month.  In case you think that this is just a temporary lull, they also showed decreases in 90+ day delinquent loans in 9 of the last 12 months (yes…for the skeptics of statistics…the 9 months of decline were far greater than the 3 months of increase!)
If the number of delinquencies decreasing wasn’t good enough news on its own, Freddie Mac also reported that they are working to increase the number of loans that they modify rather than foreclose on. 

Fewer delinquencies and more modifications mean fewer foreclosures, fewer forclosures mean less low end supply dragging our market down as a whole, and of course, as I have said many times before housing is one place where the laws of supply and demand still apply to their fullest.  When supply is low and demand is high, buyers fight over houses (even bad ones) driving prices up.  The past 5 years we have seen high supply and a low demand (fueled by a largely fearful and un-qualified under the new lending rules public) which has, predicably, driven prices down.  Maybe with less low-end inventory coming onto the market we can at least finally reach that balance point of an even supply to demand ratio…giving us that bottom to the declining market we have all been waiting for, or maybe even see things start to increase at a “normal” rate again in the near future.

Read the source article if you are interested, comment, share, and of course, Keep Dreaming!  http://www.dsnews.com/articles/freddie-macs-delinquencies-decline-for-fourth-straight-month-2011-04-26