On April 10, 2008 the Wall Street Journal reported http://online.wsj.com/article/SB120776827998402453.html that Equifax, the credit bureau, published a report stating that mortgage delinquencies had risen. The article states that part of what is driving the increase are falling house prices and rising unemployment.
The National Delinquency rate: First Mortgages 4.46%; Home Equity Line of Credit 2.37%; Second Mortgage 5.36%, Overall Delinquency 4.35%.
The States with the highest delinquency rate are Puerto Rico (8.03%), Florida (7.03%) and Nevada (6.59%). Washington State has the fifth lowest rate of delinquency, behind Alaska, Wyoming, North Dakota and South Dakota.
The average home price in many areas of the South Puget Sound and in Pierce County has risen since the beginning of this year. Employment is strong in the Puget Sound Area; the work force has increased, employment has increased and unemployment has decreased.
People who wait until they can see the "bottom" miss it, because seeing it means it has already passed them. Those who capitalize on shifting markets do so because they act close to, but not at, the top and bottom of any market.
If you are thinking of buying a house or moving up to a bigger house, now is the time to act! Delinquency rates will increase over the next 18 months. However, I believe that due to the strength of the Puget Sound economy combined with the number of people who will be moving here from other parts of the country, house prices will also increase.
Marc & Carol
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