Real Estate Tidbits

CMBS (Commercial Mortgage-Backed Securities) posted the highest delinquency rate in history in January. CMBSs are bonds, sold on Wall Street, which are backed by mortgage income from commercial real estate. According to Trepp, LLC, 9.34% of loans in all CMBS are 30 or more days delinquent; the value of these delinquent loans is $61.4 billion. Although the rate of increase of delinquent loans has slowed over the last few months, the rate of delinquency continues to climb despite considerable new issues which should be stable at least n the near term.

The credit profile of most Americans improved substantially in 2010. According to TransUnion, its Credit Risk Index (CRI) was 3.13 % lower at the end of 2010 than the reading in 2009; all states except Wisconsin improved its CRI. Wisconsin already has a CRI substantially blow the national average. Officials note that this change is a very positive sign regarding the housing industry and consumer spending.

Home ownership is still the dream of 70% of Americans according to Trulia.com. Despite the housing morass, 78% of homeowners think that their home was the best investment they ever made. Interestingly, 88% of renters 18-34 years old plan to be homeowners. One in four of these young people has become more positive about homeownership in the last 6 months. This is a very positive sign for housing in the years ahead.