One of the measures of the health of the real estate market is to track how mortgage loan repayments are performing. Understanding the trends regarding homeowner likelihood of default is important to understanding how the future supply of homes for sale will adjust. Of course, data is a bit skewed on the foreclosure front now due to the Pandemic induced moratorium on foreclosures.
Ignoring foreclosures, the rest of the mortgage information is very positive as of the latest data (end of June). The graph below, put together by Core Logic, shows improvements across the board for short-term mortgage repayment progress. However, the 120+ days past due bucket continues to rise due to the moratorium on foreclosures. What this points to is a very healthy real estate market as of this summer. It doesn’t appear that the lifting of the moratorium (whenever it happens) is going to radically alter the market.
For more details, click this link to see the broader picture from Core Logic. Also, feel free to call me with questions.