According to the Federal Reserve Bank of Dallas, a combination of stable home prices and few exotic loan products has kept Texas’ economy from plunging into the farthest pits of the recession.
Despite this information, Texas along with other communities located in the Fed’s 111th District, have still endured some of the downfalls from the housing market crash. Texas’ foreclosure inventory is at a larger number than before the recession. 2 percent of homes in Texas are in foreclosure compared to the national foreclosure inventory at 4.6 percent.
The Fed Bank believes that the majority of the state’s stability can be credited to lack of “subprime loans” in Texas,
Dallas, Tarrant, Collin and Denton counties account for 24,400 seriously delinquent prime mortgages and 6,100 subprime. The Fed says the past due payments can be attributed mostly to joblessness as opposed to the type of loan that was issued.
According to Corelogic, 11 percent of Texas homes are in negative equity. 23 percent of the entire nation is also in negative equity.
The Fed Bank report said “it is worth noting that in Texas foreclosures and serious delinquencies are less common than in the U.S., but the rates of 30-day and 60-day delinquencies have always been higher than in the nation. Texas borrowers seem to be more likely to miss one or two mortgage payments but are usually able to catch up in the third month. Although less detrimental than foreclosures, these delinquencies still impair borrowers’ credit.”