What are the problems of today’s mortgage market?

taberandrew / Creative Commons Attribution 2.0 Generic (CC BY 2.0)

While the mortgage market is much better than 2008, there  might still be reasons to investigate more carefully the current state of affairs.

As mortgage rates have been gradually but steadily increasing, the refinancing has sunk and buyers have not managed to respond fully. According to the Mortgage Bankers Association, originations in 2014 will be $1.1 trillion, which is not deemed as especially optimistic.

Another major problem is mortgage delinquency. Overdue or in foreclosure are about four million mortgages, and there are twice that much that might default.  Home prices are also increasing and were reported 11% higher in the last quarter of 2014.

While all these issues are not currently at a critical point, they might burst in the future, if combined with other conditions.

Read the full article at National Mortgage News.

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