The good news – mortgage delinquencies fell for the second consecutive quarter down to 3.45% of all loans outstanding, the lowest level in 43 years.
As for what’s on the horizon, Marina Walsh, vice president of industry analysis for the Mortgage Banker Association (MBA), believes the first half of 2023 may look a bit different.
“In line with MBA’s latest forecast calls, Walsh stressed that a recession may come in the first half of 2023, driven by tighter financial conditions, reduced business investment, and slower global growth. Consequently, the unemployment rate is projected to reach 5.5% by the end of next year, almost two percentage points higher than the estimated 3.7% rate in October 2022.”
Walsh also noted,
“The delinquency rate will likely increase in upcoming quarters from its current record low because of both the anticipated uptick in unemployment and the effect of natural disasters…”
Read the full article from News Writer Candyd Mendoza, Mortgage Professional America: “Mortgage delinquency rate hits fresh all-time low in Q3."
So what does this mean for us?
While it’s great we’re at a historic low – at the same time, always be prepared and informed. Whether you're currently in a home and facing financial hardship, or a potential homebuyer, there's financial assistance you may be eligible for from Illinois Housing Development Authority (IDHA).
Right now, the Illinois Emergency Homeowner Assistance Fund (ILHAF) program is helping current homeowners obtain grants of up to $60,000 to eliminate or reduce past-due mortgage and property tax payments. The application deadline to apply is Jan. 31, 2023.
If you're a potential homebuyer, you may be eligible for up to $10,000 in down payment and/or closing cost assistance - don't scoff, you may be surprised who qualifies: IHDA Mortgage’s income and purchase limits.
Are you in need of a Mortgage Advisor who is a trusted network partner of IHDA Mortgage Loan Products? I recommend Matt Kennedy of Guaranteed Rate Affinity. Reach out to me if you'd like a direct introduction.
Daniel Henry, Realtor
AH Heritage Home Group of Coldwell Banker