You would think by the barrage of negative news reports that just about every other home was going into foreclosure.  Certainly this is not the case. In fact, the housing market has stabilized in the past six months.  The latest report from the Mortgage Bankers Association shows that the percentage of homeowners that were behind at least one monthly payment fell from 9.1% in the third quarter to 8.2% in the fourth quarter.  Also, the 2010 delinquency rate fell from over 10% in the beginning of the year to 8.2% at the end of the year.

The 2% drop in mortgage delinquencies follows the recent drop in the Unemployment Rate and the steady increase in Existing Home Sales and Consumer Confidence.  These are significant signs that the housing market is closing in on true market equilibrium.