Post by unlawflcombatnt on May 16, 2007 13:53:22 GMT -6
Foreclosures continue to rise throughout the nation. Below is an excerpt from an article discussing foreclosures. The article is from Bloomberg News and was written by Hui-yong Yu. It's titled Mortgage Defaults Rise 62 Percent, RealtyTrac Reports.
"May 15 (Bloomberg) -- Mortgages in foreclosure rose 62 percent in April and the number of Americans falling behind on home loans will climb this year as home prices fall and lending standards are tightened, RealtyTrac Inc. said.
There were 147,708 notices of default, scheduled auctions and bank repossessions last month, led by California, Florida and Ohio, the Irvine, California-based seller of foreclosure data said today. The median U.S. home price fell 1.8 percent in the fourth quarter, according to a separate report by the National Association of Realtors.
Foreclosures are being ``fueled by a combustible mix of risky loans taken out in the last few years -- many in the subprime market -- and slowing home price appreciation,'' said James Saccacio, chief executive officer of RealtyTrac, in a statement.
Mortgage lenders are raising credit standards after the number of loans entering foreclosure rose to an all-time high in the fourth quarter. The 2007 median price for an existing home likely will decline 1 percent to $219,800, the National Association of Realtors said last month, the first drop since the real estate group began keeping records in 1968 and probably the first decline since the Great Depression. Falling prices make it more difficult for homeowners to avoid foreclosure by selling....
April foreclosures were down about 1 percent from the more than 149,000 filings in March, the most since RealtyTrac started compiling such information in January 2005....
California had the largest number of foreclosure filings last month, with 30,505, followed by Florida at 14,318 and Ohio with 11,431, RealtyTrac said. All three states had advanced from a year earlier..."
(The full article can be found at Mortgage Defaults Rise 62 Percent, RealtyTrac Reports.)
Using the combined foreclosure filings from April (147,708) and March (149,000), the annualized foreclosure rate is 1.78 million. Last years rate was approximately 1.3 million. 2005's was roughly 800-900 thousand. The current foreclosure rate would almost 1 million more homes on the market than it did in 2005. In other words, foreclosures are adding another 900 thousand to 1 million more homes to the total home supply to that added by New Home Construction.
The increasing supply is absolutely guaranteed to depress prices. The reduction in subprime mortgage lending will suppress prices still further. The failure of New Home Starts to decline as fast as the decline in New Home Sales will further increase the total inventory of homes on the market, and further decrease prices.
And we're nowhere near the "bottom" yet.
"May 15 (Bloomberg) -- Mortgages in foreclosure rose 62 percent in April and the number of Americans falling behind on home loans will climb this year as home prices fall and lending standards are tightened, RealtyTrac Inc. said.
There were 147,708 notices of default, scheduled auctions and bank repossessions last month, led by California, Florida and Ohio, the Irvine, California-based seller of foreclosure data said today. The median U.S. home price fell 1.8 percent in the fourth quarter, according to a separate report by the National Association of Realtors.
Foreclosures are being ``fueled by a combustible mix of risky loans taken out in the last few years -- many in the subprime market -- and slowing home price appreciation,'' said James Saccacio, chief executive officer of RealtyTrac, in a statement.
Mortgage lenders are raising credit standards after the number of loans entering foreclosure rose to an all-time high in the fourth quarter. The 2007 median price for an existing home likely will decline 1 percent to $219,800, the National Association of Realtors said last month, the first drop since the real estate group began keeping records in 1968 and probably the first decline since the Great Depression. Falling prices make it more difficult for homeowners to avoid foreclosure by selling....
April foreclosures were down about 1 percent from the more than 149,000 filings in March, the most since RealtyTrac started compiling such information in January 2005....
California had the largest number of foreclosure filings last month, with 30,505, followed by Florida at 14,318 and Ohio with 11,431, RealtyTrac said. All three states had advanced from a year earlier..."
(The full article can be found at Mortgage Defaults Rise 62 Percent, RealtyTrac Reports.)
Using the combined foreclosure filings from April (147,708) and March (149,000), the annualized foreclosure rate is 1.78 million. Last years rate was approximately 1.3 million. 2005's was roughly 800-900 thousand. The current foreclosure rate would almost 1 million more homes on the market than it did in 2005. In other words, foreclosures are adding another 900 thousand to 1 million more homes to the total home supply to that added by New Home Construction.
The increasing supply is absolutely guaranteed to depress prices. The reduction in subprime mortgage lending will suppress prices still further. The failure of New Home Starts to decline as fast as the decline in New Home Sales will further increase the total inventory of homes on the market, and further decrease prices.
And we're nowhere near the "bottom" yet.