The Housing Crisis Isn’t Over
While the mainstream media is focused on promoting the narrative that the housing crisis is over, more knowledgeable and informed sources are providing more sobering analysis and statistics.
The Joint Center for Housing Studies of Harvard University released a report at the end of last month entitled “The State of the Nation’s Housing,” which examines the various aspects of the housing market – from home prices and construction activity to homeownership rates and household costs – and sheds light on the millions of homeowners who continue to face mortgage and financial challenges.
The report notes that, while the number of loans in some stage of delinquency but not yet in foreclosure declined 7.3 percent in the first quarter of 2013, more than 1.4 million homes remained in foreclosure during this time, representing 3.6 percent of all mortgages in service. That’s more than four times the average rate between 1974-1999.
Additionally, the report finds that household costs, student loan debt, and anemic income growth continue to burden many borrowers, hindering their ability to achieve financial stability; the number of “severely burdened” households – or those that spend more than 50 percent of their pre-tax income on housing – increased by 49 percent between 2001 and 2011.
The housing crisis, while abating, is far from over, as evidenced by the sheer number of calls we continue to receive via our national HOPE Hotline. HPF counselors continue to provide unbiased assistance to distressed borrowers seeking a solution to their individual circumstance.
If you are struggling with your mortgage payment, are facing foreclosure, or feel financially in over your head, our counselors can help you explore your options. Please call 888-995-HOPE (4673) for free to speak with a counselor today.