Mortgage Delinquency Rates 2010: Optimistic trend forming?
At 10:00 am EST today, Federal Reserve Chairman Ben Bernanke will speak at the Fed’s annual meeting in Jackson Hole, Wyoming. And after the Dow just dipped yet again below the 10,000 mark yesterday, many investors will be tuning in to see how his perceived outlook could effect today’s market.
Among the many nightmare-ish charts Bernanke will be discussing, BankVibe.com will be closely following his interpretation of the current mortgage delinquency trends.
It seems there may be some reason for optimism according the Fed’s charts (which will be presented in the discussion). The charts show that actually as of May 2010, mortgage delinquency rates have begun to taper. Since the housing and economic collapse adjustable rate mortgages have been hit hardest with payment delinquencies. At their peak, mortgage payment delinquencies where affecting slightly over 15% of home owners with prime or near prime mortgages and a staggering 50% of all sub prime mortgages. For most of us, however, these facts are likely old news – what’s a more recent development is the beginning of a downward trend which these charts are beginning to show. Even subprime mortgage delinquency rates have begun to decline as of May.
So while rates still remain uncomfortably high, it still should be noted that there appears to be at least a faint light at the end of the tunnel.
