US delinquency rate drops on monthly basis

Only a few years ago, the Great Recession was characterized by a high number of foreclosures, delinquent mortgages and other struggles in the U.S. housing market. However, recent conditions are improving, and new data about this sector indicates that these positive trends are ongoing.

Only a few years ago, the Great Recession was characterized by a high number of foreclosures, delinquent mortgages and other struggles in the U.S. housing market. However, recent conditions are improving, and new data about this sector indicates that these positive trends are ongoing.

For instance, Black Knight Financial Services reported that the total U.S. loan delinquency rate reached 5.6 percent this past July. On a monthly basis, that is a decline of 1.1 percent. On a similar note, the total U.S. foreclosure pre-sale inventory rate was 1.8 percent during that time, down 1.6 percent from June to July. The rates for new problem loans also declined, and are now at their lowest levels since early 2005.

Overall, this is a good sign for the housing market. Fewer homeowners are having trouble making their mortgage payments, which means fewer foreclosures entering the pipeline and a smaller amount of delinquent loans.

Lending standards tighten across country
In addition to this information, the Mortgage Bankers Association noted that residential financing availability slipped slightly in August, but lending standards are more consumer-friendly in some parts of the country. 

"While overall access to credit tightened in August, we did see some loosening in certain segments of the purchase market," said Michael Fratantoni, chief economist for the MBA. "In particular, lenders instituted additional offerings of loan programs like the FHA 203(k) home improvement program and one-time-close programs for financing new construction."

The organization's Mortgage Credit Availability Index, or MCAI, dropped 0.3 percent from July's reading of 116.4, to 116.1 in August. Any decline is a signal that lending standards are getting tighter.

While this may be true, the housing market remains favorable to consumers across most of the country. In order to navigate this current climate, it helps to have access to a wide range of information. With CRS Data, professionals can acquire mortgage records, warranty deeds and much more, right online. To learn more about the CRS Data Real Estate Suite, click here.



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