BACK

Debt Management

Personal finance predictions for 2010: Housing’s modest comeback

Summary

Delinquencies predicted to level off, finally ending the bleeding that took us into a steep recession.

The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.

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

Editorial Disclaimer

The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.

What’s up next?

In Debt Management

Interactive: Life cycle of a delinquent credit card account

The longer your debt goes unpaid, the more it changes hands. Learn the ins and outs of the delinquent debt cycle in this interactive presentation.

See more stories
Credit Card Rate Report Updated: September 23rd, 2020
Business
13.91%
Airline
15.48%
Cash Back
15.94%
Reward
15.78%
Student
16.12%

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.