Posts Tagged ‘Great Recession’

Homeownership Up From 50-Year Low

Posted on August 09, 2017 by Laura Lam

The U.S. homeownership rate climbed in the second quarter, a signal that the sharp downward spiral that began after the housing crash is finally reversing.  The homeownership rate hit 63.7% in the second quarter, the Census Bureau said, a jump of nearly a full percentage point from a year ago, when it touched a 50-year low of 62.9%. The share of Americans who own homes has climbed steadily since then.  The homeownership rate also edged up from the first quarter, when it sat at 63.6%. “The damage the [2007-09] great recession has done to the homeownership rate is likely reversing course,” said…

Subprime Auto Defaults are Soaring

Posted on August 02, 2017 by Laura Lam

It’s classic subprime: hasty loans, rapid defaults, and, at times, outright fraud.  Only this isn’t the U.S. housing market circa 2007. It’s the U.S. auto industry circa 2017.  A decade after the mortgage debacle, the financial industry has embraced another type of subprime debt: auto loans. And, like last time, the risks are spreading as they’re bundled into securities for investors worldwide.  In July, 90-day auto loan delinquency rates eclipsed 3.8%, their highest levels since the financial crisis. Subprime car loans have been around for ages, and no one is suggesting they’ll unleash the next crisis. But since the Great…

Household Debt Hits New Record

Posted on May 23, 2017 by Laura Lam

Household debt is topping its 2008 peak prior to the housing crash. Total household debt has risen to $12.73 trillion in the first quarter, the Federal Reserve Bank of New York reported last week. However, Americans are handling their debt—mortgages, credit cards, auto loans, and other forms of borrowing – much better, the report shows.  Americans were delinquent on 4.8% of total debt in the first quarter. For comparison, at the end of 2009, 11.9% of consumers were delinquent on their debt by at least 30 days. The increase in household debt may indicate that more Americans are confident about…

Subprime Student Loans Resemble Pre-Crisis Mortgage Loans

Posted on April 28, 2017 by Laura Lam

Millions of U.S. parents have taken out loans from the government to help their children pay for college … now a crushing bill is coming due.  Hundreds of thousands have tumbled into delinquency and default. In the process, many have delayed retirement, put off health expenses and lost portions of Social Security checks and tax refunds to their lender, the federal government. Student loans made through parents come from an Education Department program called Parent Plus, which has loans outstanding to more than 3 million Americans. These loan applications ask almost nothing about its borrowers’ incomes, existing debts, savings, credit…

The Housing Crisis: 10 Years Later

Posted on April 03, 2017 by Laura Lam

CoreLogic recently released a report entitled, United States Residential Foreclosure Crisis: 10 Years Later, in which they examined the years leading up to the crisis all the way through to present day. In 2010, at the peak of the Great Recession, nearly 1.2 million U.S. homes went through completed foreclosures, nearly 5 times as many as in 2000 and about double the number of completed foreclosures in 2007, the year the housing crisis really took off. Many economists mark the beginning of the foreclosure crisis with the collapse of two Bear Stearns subprime funds in June 2007, with the crisis deepening as a…

Foreclosure Activity Hits 11-Year Low

Posted on March 24, 2017 by Laura Lam

Foreclosure activity dropped in February to an 11-year low, according to new data from ATTOM Data Solutions.  This decrease marks the lowest point since November 2005, and the 17th consecutive month of annual decreases.  But despite this drop, 10 states still saw an increase in foreclosure activity. States that saw the largest increases include New Jersey with an increase of 16%, Delaware with 14%, Louisiana with 12%, Alabama with 10% and Hawaii with 8%.  Some cities also saw strong increases, contrary to the national trend. Houston, Texas, for example, increased 97% from an abnormally low February 2016. Other cities such as…

Will These Mortgage Trends Make a Comeback in ’17?

Posted on January 05, 2017 by Laura Lam

The boom-bust cycle of refinancing and a host of other mortgage trends and strategies tend to come and go and come again depending on varying factors.  “It is a cyclical business,” said David Kittle, president of The Mortgage Collaborative.  It’s been a while since the cycle has turned, but it’s finally expected to this year due to the new administration and Congress and the recent rise in rates. Some mortgage-related ideas and market conditions from the past are likely to be back as a result.  Not all of the following retro industry market trends or proposals may become realities in…

Household Income Grew 5.2% in 2015

Posted on October 06, 2016 by Laura Lam

Americans last year reaped the largest economic gains in nearly a generation as poverty fell, health insurance coverage spread and incomes rose sharply for households on every rung of the economic ladder, ending years of stagnation.  The median household’s income in 2015 was $56,500, up 5.2% from the previous year – the largest single-year increase since record-keeping began in 1967, according to the Census Bureau.   The share of Americans living in poverty also posted the sharpest decline in decades. The gains were an important milestone for the economic expansion that began in 2009. For the first time in recent years, the…

Businesses Fall Behind on Their Loans

Posted on May 25, 2016 by Laura Lam

The Board of Governors of the Federal Reserve released its delinquency and charge-off data for all commercial banks in the first quarter – and it’s very sobering data.   While delinquencies on the consumer side appear quite positive, delinquencies on the business side are spiking. Consumer loans and credit card loans have been hanging in there so far. Credit card delinquencies rose in the second half of 2015, but in Q1 2016, they ticked down a little. Mortgage delinquencies are low and falling. When home prices are soaring, no one defaults for long; you can sell the home and pay off your mortgage….