Since the Federal Reserve made its December 2011 balance sheet public, there has been a slew of articles with hopeful news for the financial future of the country. The point is that it’s not too early to let that smile crawl across your face.
The most broad measure of the unemployment figure, the U-6, shows a fall to 16 percent. This is the lowest U-6 to be reported since the beginning of the current recession in December 2007. This is important to the housing market for one huge reason: in order to buy homes people need income. Income to pay for mortgage, the taxes on the real estate, insurance, etc.
Data from the Fannie Mae National Housing Survey
According to the Fannie Mae National Housing Survey the general population’s average home price level expectation has increased to .2 percent, making it the first time since May for this figure to increase (see graphic). This same survey also showed that while the majority of responders believe home prices in the next 12 months will remain constant, the number who believe prices will fall is getting smaller and those who believe prices will get higher is growing.
Numbers aren’t showing a quick recovery, but often in economics slow and steady wins the race. And there are more promising numbers, with interest rates for 30-year fixed-rate mortgages still below four percent.
Also, the number of current home owners who have been at delinquent status for loan payments seems to be shrinking. According to TransUnion, a credit reporting agency, almost seven percent of home owners were at least 60 days late on their mortgage payments while the country was in the thick of the recession. TransUnion projects mortgage delinquencies to fall in 2012.
“The expected mortgage delinquency decline in 2012 would follow recent yearly trends, including an expected 7% decrease by the end of this year and a 7% reduction in 2010,” reported TransUnion.
All of these numbers seem to give a sense of relief moving into 2012, but it may still take a few years before the housing market can turn itself around completely. In the meantime enjoy some eggnog, ring in the new year, and hope for a swift recovery.
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