As of last Thursday the number of homeowners who are either facing foreclosure or are behind on their mortgage payment has dropped to the lowest point in the past five years.
The Mortgage Bankers Association (MBA) had a press release last week that stated, “The serious delinquency rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 5.88 percent, a decrease of 51 basis points from last quarter, and a decrease of 143 basis points from the second quarter of last year.”
The MBA talked about how the number of foreclosures we are seeing is more of a historical normal as opposed to the high rate of foreclosure we saw even a year ago. We are seeing the housing market improve each and every quarter.
The MBA said, “Most states are at or only slightly above longer-term averages, and some of the worst-hit states are showing improvement.”
Delinquencies and foreclosures have returned closer to their pre-crisis levels in states such as California and Arizona that don’t require mortgage companies to take back homes by appearing before a judge.
California and Arizona had foreclosure rates of 1.6% and 1.5%, putting them at No. 37 and No. 38 in foreclosures nationally. Those states had the third and fourth worst foreclosure rates in the country at the depth of the housing downturn.
Nationally, banks initiated foreclosure on around 0.6% of mortgages during the second quarter, down from a peak of 1.4% in 2009 but above a more normal level of 0.4%. “The rate of new foreclosures being started is still way too high, but it is down from the peak,” said Jay Brinkmann, Economist and SVP of Research and Economics.
Mr. Brinkman also said, “While overall economic growth and jobs creation have been less than robust, the improvements have not been consistent across the country or all sectors. The result is that those states with the weakest economic growth and the most sclerotic foreclosure systems have seen the slowest improvements in delinquency and foreclosure rates.”
All in all we can see that the housing market is still working its way back up even if it is not at the same rapid rate that we have been seeing in the past few months. However, it is nice to hear that the economic forecast for the near future looks good.
For questions or suggestions, please feel free to email me at Ingrid.Quinn@cobaltmortgage.com or visit me at http://www.CobaltMortgage.com/IngridQuinn or http://www.ScottsdaleMortgageExpert.com