Posted by: islamicfinancingnews | September 26, 2013

Islamic Finance News: Americans Prioritizing Mortgage Payments Again

There’s been some recent good news on the Islamic finance front from the Associated Press. It seems that more Americans are making their mortgage payments on time as reports have home values on the upswing. This is good news on several fronts and includes the people that carry Islamic loans since they are just as concerned with home values and equity as those with more traditional western-style products.

Credit reporting agency TransUnion made the announcement as part of the survey they undertook which looked at the credit habits of some 20 million consumers a month. The trend is important because it suggests a movement back to the payment patterns that existed before the Great Recession, when most distressed people payed their mortgages ahead of credit cards.  Still, the American population is doing a better job of paying those mortgages down and the late payment rate nationally has even fallen to its lowest rate in the last five years.

Nationally, the housing market, and by proxy Islamic loans, aren’t out of the woods just yet as the mortgage delinquency rate is still above the benchmark historical average. This indicates many homeowners are still struggling to make the necessary payments. By all accounts, this news is only a small step on the road to a full recovery.

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