Mortgage market to completely recover

by Justin da Rosa16 Dec 2015
Originators who were dedicated enough to wait out the storm and resulting fallout of the housing crisis will finally be validated by the end of next year, according to one forecast.

The mortgage market – and other consumer lending industries – will reach full recovery by the end of 2016, according to a recently released forecast by TransUnion.

"Both the mortgage and credit card markets are performing extremely well, with increased consumer participation and continued low delinquency rates," Ezra Becker, vice president of research and consulting in the financial services unit at TransUnion, said. "Despite the fact that more consumers — and more nonprime consumers — are entering the housing market, delinquency levels have remained in check and balances are growing."

Serious mortgage delinquencies are expected to fall from 2.5% at the end of 2015 to 2.06% by the end of next year, according to the credit agency.

That will be a marked improvement from the peak of 6.94% in 2010.

A rebound in housing prices has also led to an increase in the average mortgage debt per borrower. However, more prudent lending standards have helped insulate the market from the same kind of downturn experienced during the sub-prime lending boom.

"This is a clear indicator that housing prices are recovering and consumers are gaining access to more mortgage loans," said Steve Chaouki, head of TransUnion's financial services business unit.

COMMENTS

  • by Veteran | 12/16/2015 1:12:58 PM

    Nonsense! More rules and regulations will lead to more mortgages?
    Since when more biurocracy leads to more choices and better times for originators? Regulation kills growth and assumes that consumer and lenders are too stupid to make their own decisions.
    It has been tried before, it's known as socialism. It destroyed quite a few great countries.

  • by | 12/17/2015 11:57:32 AM

    There is too much regulation in lending. I want to see an end to higher interest rates for the low end borrower. It is easy to have a high credit score when you are well off. There are a lot of people out there struggling to earn a living who can afford to buy a home, but because they have a low credit score, they have to pay a higher rate. Sometimes this knocks them out of the running. This is ridiculous. Instead of all the Respa-Til regs, lets just give everybody the same interest rate.

  • by MortDr. | 12/17/2015 3:19:49 PM

    There is no way everyone should have the same interest rate!

    "There are a lot of people out there struggling to earn a living who can afford to buy a home"....you don't see any problems with this statement??

    #getaclue

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