Home finance write-offs year-to-date in July 2013 dropped by 22% this year and it is also being termed as the highest drop since 2007 according to a report from Equifax. The Chief Economist, Amy Crews Cutts, of Equifax has quoted, “Only two major consumer credit segments are growing: auto financing and student loans.” According to Cutts, the consumers are reducing their burden of debts through bankruptcies, payoffs and foreclosures. Payoffs are being considered by a large part of the population to reduce debt and improve their financial situation. New home purchase loans are expected in the coming months, which will help in increasing the mortgage balance again.
Although, industry experts are claiming that foreclosures are not primarily the point of focus but it is still on the heavier side. People are slowly getting back into a position where they can increase their borrowing or get ready for a new mortgage. The market is expected to come back to normal and healthy in some time but still there are many issues that need attention. For example, the slow process of foreclosures is posing problems for people who are losing out on their property due to this issue. The housing market is experiencing an increase in new home purchases that will help in rectifying all the issues and make it better for everyone.
In the end, we suggest that you never know what the economy may bring to us and how the trends will flow!