Before we get into some of the statistics about Colorado mortgages recently compiled by the Mortgage Bankers Association, let’s remind ourselves that the value of our increasingly popular Denver Colorado real estate continues to improve over time.
Denver Business Journal (9/5/08) published the second-quarter figures from the Mortgage Bankers Association for mortgages in Colorado and the nation. Here’s a quick look at 1) delinquencies on Colorado mortgages, 2) foreclosure rates for Colorado home loans, and 3) the subprime connection to mortgages in Denver and Colorado.
1) There were fewer delinquencies on Colorado home loans in the second quarter than during the first quarter. Colorado homeowners ranked 39th in the first quarter for Colorado mortgage delinquencies and 41st in the second quarter. At the same time, the percentage of Colorado loans that went past due rose to 4.33 percent. That is an increase of 33 basis points and can be compared with the nationwide delinquency rate up only 6 basis points from the first quarter. The nation is up 129 basis points from a year ago.
2) Colorado ranked 14th in the number of foreclosures that were started during the second quarter. Statewide, 2.23 percent of home loans were in foreclosure (11 basis points). Nationally, California and Florida account for 39 percent of all foreclosures during the second quarter. Eight states are experiencing above average mortgage foreclosure rates including Nevada, Florida, California, Arizona, Michigan, Rhode Island, Indiana, and Ohio. Some states such as Texas, Massachusetts, and Maryland have improved.
3) The Journal quoted Jay Brinkmann, chief economist for the Mortgage Bankers Association, saying that subprime loans accounted for 36 percent of all of the foreclosures that get started. Prime ARMS and option ARMS represented 23 percent. Nationally, about 19 percent of home loans fell into this category. Twenty percent of Colorado’s loans in foreclosure were of the subprime type.
Yes, some of our residents are struggling with house payments? The fact is that we have all learned a lesson in this market. Aren’t we fortunate that we live in a beautiful central location in the United States with wonderful views of the Front Range and exciting opportunities? We have built a diverse economy and culture and enjoy easy access to fabulous national forests and open spaces. Our real estate is appreciating and our investments are as solid as we will determine to make them.
For information about sound but creative financing for your real estate purchase, contact Brad Wyatt of MAC5 Mortgage at (720) 407-6338.
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