BACK

Research and Statistics

Personal finance predictions for 2010: Housing’s modest comeback

10.Your spending
9.Your credit card
8.Your debit card
7.Your rewards
6.Your phone
5.Your paycheck
YOUR HOME
3.Your mail
2.Your ID
1.Your kids

Will 2010 be the year that home prices level out?

There are encouraging signs from the credit recording company TransUnion, which forecasts relief on the housing front following three straight years of increases in mortgage delinquencies.

TransUnion predicts that the portion of U.S. homeowners who are two or more months late with their mortgage rates will drop about 3 percent, which will result in a similar sized drop in mortgage payments for someone who refinances.

That’s expected to halt the bleeding that began back in 2006, when mortgage delinquencies rose 50 percent per year from 1.94 percent.

Fitch Ratings was less optimistic in its 2010 predictions. Due to the flat residential mortgage-backed securities (RMBS) market, Fitch says housing prices could continue to drop by 10 percent in the coming year as temporary government assistance programs like the Home Affordable Modification Program struggle to keep up with rising delinquencies.

“Negative equity, high re-default rates on modified loans and additional rises in unemployment may deter any positive momentum for RMBS,” says Fitch senior director Grant Bailey.

Next in the countdown, 3:Your mail

Don’t blow first-time home buyer tax credit with credit card bills

What’s up next?

In Research and Statistics

Personal finance predictions for 2010

You'll change the ways you and your family will spend, borrow and save, experts predict.

Published: December 31, 2009

See more stories
Credit Card Rate Report Updated: May 23rd, 2019
Business
15.61%
Airline
17.50%
Cash Back
17.60%
Reward
17.62%
Student
17.79%

Questions or comments?

Contact us

Editorial corrections policies

Learn more

Join the Discussion

We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company’s business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.