Updated: April 29, 2016
On Wall Street, there’s a familiar saying: the next crisis won’t look like the last one. If true, it means the next crisis won’t be in the mortgage market—it will be somewhere else.
There are reasons to feel confident about this hypothesis. Mortgage delinquency rates are falling significantly, according to data from the Federal Reserve. Back in the first quarter of 2010, delinquencies on single-family mortgages peaked at 11.26% – they’ve declined steadily since, and are quickly approaching 5%.
Mortgage Delinquency Rates Continue to Decline
Several analysts believe that on-time mortgage payments will continue to improve. Delinquencies are still high by historic standards – throughout most of the 1990s and in the 2000s, defaults stayed below 3%.… Read more