The many Americans who defaulted on their mortgages during and after the housing crisis have struggled to regain access to the mortgage market, according to a report from the San Francisco Federal Reserve.
The report found that only about 10 percent of people who had a serious delinquency on their mortgage have been able to re-enter the market within 10 years of their default. However, those who terminated their loan for another reason other than default have had more success re-entering the market, as they have been able to return about two-and-a-half times faster.
Some of the people who defaulted have ended up saving money, as they have been able to cut down on the high housing expenditures that typically take up about 30 to 35 percent of total household income by renting.
However, those who have been able to re-enter the mortgage market have had favorable interest rates to take advantage of. According to Freddie Mac, 15-year fixed-rate mortgages averaged 2.72 percent in the week ending October 25, while 30-year FRMs averaged 3.41 percent. Both averages are well below those seen a year ago at the same time.