There's another sign of stability in the housing market: Fewer people are falling behind on their mortgage payments. CoreLogic said the foreclosure rate in the Twin Cities metro during November 2014 was 0.51 percent, a decrease of 0.27 percentage points compared to November of 2013 when the rate was 0.78 percent. That's compared with a nationwide foreclosure rate of 1.48 percent during the same period.
There's also evidence the foreclosure rate will continue to declinine. Just 2.21 percent of mortgage loans were 90 days or more delinquent compared to 2.75 percent for the same period last year, a decrease of 0.54 percentage points. Not everyone who falls behind on their payment falls into foreclosure, but the measure is a good indication of whether foreclosure rates will rise or fall.
Declines in the foreclosure rates are the result of an improving economy and a healthier housing market. With fewer people out of work, fewer fall behind on their mortgages. And if even if that happens, higher home prices make it easier for them to sell before the foreclosure process begins.
