Waiting for that big market crash? You may not want hold your breath waiting for foreclosures.

Matt Boytz

September 1, 2023

Local Mortgage Report
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If you are waiting for that big market crash that some people love to talk about, I wouldn’t hold your breath. Q2 of 2023 officially puts us in the lowest mortgage delinquency rate ever recorded- Even lower than when all COVID forbearance relief was in play.

The risk of foreclosure is almost non existent for the majority of borrowers right now, because home owners have a record high amount of  home equity and the supply shortage is nowhere near caught up to the new household formations. This enables any distressed owners to sell for a profit instead of walk away. The average loan to value of US homeowners has hovered below 45% for the past year. Moving into the great recession that number was at a whopping 71.3%. That means its almost near impossible to see the crash of home values leading to owners being underwater.

In addition to that 99% of mortgage are currently less than a 6% interest rate, so affordability for those who bought prior to Q2 2022 are solid in that regard as well.

If you have more questions, or want to chat more on that, Give me a call or email. Matt@BendMortgageBrokers.com
On the brighter side, let’s hope this rain today can keep coming for a few more weeks. Check out the rainy view over by the Volvo dealership today, hopefully, that helps with the Bedrock and Lookout Fires.

Matt Boytz author

Matt Boytz
Direct: 541-359-7212
Office: 541-972-8616
NMLS 1294957
NMLS 2552455
Matt@BendMortgageBrokers.com
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