U.S. housing market rebounding

/Image via michiganonthemove.com

 

There was more good news from the U.S. housing market last week, with the number of delinquent mortgages falling to a four-year low. Bloomberg reported home loan payments that were at least three months behind or in the foreclosure process fell to 6.7 percent of all mortgages in the third quarter of 2012.

It appears the housing market has not only bottomed out but also is moving strongly in a positive direction, which bodes well for the world's keystone economy.

Consumers drive the U.S. economy. The biggest investment most consumers have is a house. Until the housing market fully recovers from its 2008 meltdown, consumers are going to lack the level of confidence needed to open their wallets and start spending again.

In addition to the falling mortgage deliquencies, here are some other positive housing market signs from the past six months that Bloomberg reported:
- The percentage share of all mortgages in foreclosure decreased.
- Home sales prices rose.
- The number of distressed home sales fell. (Distressed home sales include so-called short sales, when homeowners are compelled to sell a house quickly in an attempt to liquidate assets and pay off lenders.)
- Rising home prices helped 1.9 million underwater homeowners get back to the point where their houses were worth more than what they owed on their mortgages.

For those Americans looking to time the housing market, its going to be tempting to make a move in 2013. Many home buyers can still take advantage of historically low house prices and low mortgage interest rates. Many homeowners who have been stuck in place with few potential buyers in the market finally have a glimmer of hope that they can sell their homes and move on.