Home Costs Remain Elevated but the Housing Market Is Expected to See a Drop in Foreclosures
A majority of homeowners secured mortgage rates prior to price increases, keeping their costs low
June 17, 2024
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The amount of foreclosed homes is projected to go down as a majority of homeowners bought when costs were lower.
The U.S. housing market is unlikely to see a surge in foreclosures, keeping house prices relatively stable over the next several quarters. According to recent insight from the Calculated Risk blog, current prices may be locked in place for a while as many current homeowners have owned their homes for several years and therefore have low mortgage rates. In fact, a majority of homeowners secured rates under 5% when initially purchasing their homes.
Currently 22.2% of loans are under 3%, 58.1% are under 4%, and 77.0% are under 5%.With substantial equity, and low mortgage rates (mostly at fixed rates), few homeowners will have financial difficulties.
