Mortgage stability could be result of employment growth

The rates of loan modifications and delinquencies of mortgages backed by Freddie Mac remained relatively unchanged in February from the previous month.

The rates of loan modifications and delinquencies of mortgages backed by Freddie Mac remained relatively unchanged in February from the previous month.

A recent report from the government-sponsored enterprise revealed that the number of mortgages the company modified during the month edged slightly lower to 4,644 loans. At the beginning of 2012, the number hovered at 4,725.

Meanwhile, the mortgage giant found that the delinquency rate also decreased to 3.57 percent. The previous month, the rate stood at 3.59 percent. Even though the change was only slight, it was an improvement, which could be an indicator of economic improvements, as more borrowers are able to make their mortgage payments.  

Federal Reserve Chairman Ben Bernanke recently stated that creating long-term unemployment fixes is paramount to creating safety and soundness in the mortgage industry.

"If structural factors are the predominant explanation for the increase in long-term unemployment, it will become even more important to take the steps needed to ensure that workers are able to obtain the skills needed to meet the demands of our rapidly changing economy," Bernanke said during a speech in Washington, D.C.

Despite recent improvements, Bernanke was unsure about the sustainability of the current rate of growth in the job market.



blog comments powered by Disqus