You are on notice that there are inflection points in the housing market that may cause a downturn. Consider the following:
1) The Mortgage Bankers Association recently announced for the fourth quarter of 2016 California’s mortgage delinquency rate weighed in at 3.2 percent. The national rate was worse at 4.8 percent. And, the national delinquency rate was up 28 basis points from the previous quarter. Yikes!
2) Zillow recently reported that Los Angeles-Orange County homebuyers spent an average of 43 percent of their median household income on their monthly mortgage payment in the fourth quarter of 2016. The LA/OC region is the most expensive region (based upon the 35 largest markets) in the U.S., with San Jose coming in second and San Francisco coming in third. How much more increased payment capacity do we really have?
3) Household debt which includes mortgages,…