Positive Signs

Nationwide, mortgage default rates and credit card defaults have been on the decline.  Further, for the first time since September of 2008, credit card default rates are higher than foreclosure rates.  When the housing bubble burst many homeowners found that they owed more on their mortgages than their homes were worth.  Couple that with higher unemployment and you have a sector of folks who valued their credit cards (and the safety net of funds) more than their homes.  Today, unemployment is more than 3% lower than in September of 2009 when mortgage defaults peaked at 4.92%.  Positive Signs for our Edmond, Oklahoma friends and family.

Mortgage Delinquency:          1.71%  (September 2008: 5.03%)
Credit Card Delinquency:       1.83%  (September 2008: 5.12%)
Auto Loan Delinquency:        0.87%  (September 2008: 1.65%)

Why do car loans today and historically have lower delinquency rates?  People have to drive to work.

Useful Real Estate Reports (Part 2)

As we said last time, we believe the best way to come to an informed opinion on any topic is to rely on multiple, reputable resources for the information upon which you ultimately base your views.  Here are three more timely articles from the end of last year to help shed a little light on the Real Estate landscape for 2014:

REPORT: BIG SHIFT IN US HOUSING MARKET IN 2014

Next year will mark the end of the refinance boom and the start of a market dominated by purchase money lending, the first purchase-dominated market in 14 years, according to Freddie Mac. By: World Property Channel Staff, November 20, 2013 | To read the article in full, please visit: big shift article

GSES UPDATE SHORT SALE POLICIES

Fannie Mae and Freddie Mac announced changes to their Servicing Guides Monday aimed at helping more borrowers avoid foreclosure through short sales and deeds-in-lieu of foreclosure (DILs). By: Carrie Bay, DSNews, November 25, 2013 | To read the article in full, please visit: gses update article

FORECLOSED SALES AT U.S. AUCTIONS DOUBLE AS PRICES GAIN

Purchases of foreclosed homes at auctions jumped last month as banks benefited from surging prices and shunned approvals of sales by homeowners dumping their dwellings at a loss. By Kathleen M. Howley, Bloomberg, November 26, 2013 | To read the article in full, please visit: foreclosed sales article

Useful Real Estate Reports (Part 1)

We believe the best way to come to an informed opinion on any topic is to rely on multiple, reputable resources for the information upon which you ultimately will base your views.  Below we’ve listed four interesting articles from the end of 2013, all from reputable resources, to help shed a little light on the Real Estate landscape of 2014.  Check out the links for the full articles.

INSIGHT: A NEW WAVE OF U.S. MORTGAGE TROUBLE THREATENS

U.S. borrowers are increasingly missing payments on home equity lines of credit they took out during the housing bubble, a trend that could deal another blow to the country’s biggest banks. By: Peter Rudegeair, Reuters, November 26, 2013 | To read the article in full, please visit: insight article

REAL ESTATE CROWDFUNDING: WHY IT’S A BIG DEAL

Sometimes, when you cover your ears to escape all the chatter about real estate crowdfunding, you may ask yourself, “What is the big deal?” By: Teke Wiggin, Inman News, November 25, 2013 | To read the article in full, please visit: crowdfunding article

BUILDING PERMITS IN U.S. JUMP TO FIVE-YEAR HIGH

More applications for home construction were issued in October than at any time in the past five years, a sign the U.S. residential real-estate market is gaining momentum heading into 2014. By Victoria Stilwell, Bloomberg, November, 26, 2013 | To read the article in full, please visit: building permits article

RESIDENTIAL HOME SALES CONTINUE TO CLIMB: REALTYTRAC

Residential property sales, including single-family homes, condominiums and townhomes, continue to rise, increasing to an estimated annualized pace of 5.649 million in October, a 2% hike from a month ago and an increase of 13% from October 2012, the latest RealtyTrac Residential and Foreclosure Sales Report revealed. By: Brena Swanson, HousingWire, November 26, 2013 | To read the article in full, please visit: residential home sales article