State of Housing
Foreclosure Filings Continue to Rise, Up 65%!
In previous posts, we've told you that the housing has not bottomed. In order for the housing to bottom, the inventory has to start decreasing. But With the foreclosure filings up, it seems like we will be adding to the glut of unsold homes.
Home foreclosure filings in April totaled 243,353, up 4 percent from March, RealtyTrac, an online market of foreclosure properties, said in its U.S. Foreclosure Market Report.
The figure is a total of default notices, auction sale notices and bank repossessions. "The total number of U.S. properties with foreclosure activity in April was the highest monthly total we've seen since we began issuing the report in January 2005," James J. Saccacio, chief executive officer of RealtyTrac, said in a statement.
Not only is the pace of foreclosures not going down, it is the highest monthly total.
"These properties contribute to already bloated inventories of homes for sale, and put downward pressure on home values," Saccacio said, adding that the nationwide foreclosure rate could reach 2 percent by the end of the year.
.....
The vote positions Vallejo, a town of more than 100,000 residents along a main highway between San Francisco and the state capital of Sacramento, to become the first sizeable city in California to file for bankruptcy.
As home prices keep going lower local tax revenues will be effected.
In other housing news, weekly mortgage demand rose but the demand was fueuled by home refinancing.
The MBA's seasonally adjusted purchase index dropped 0.7 percent to 378.5.
The index was also below its year-ago level of 432.3, a drop of 12.4 percent.
The four-week moving average of mortgage applications, which smoothes the volatile weekly figures, was down 2.7 percent to 633.6.
The mortgage applications are dropping from a year-ago and that even as demand for refinancing is jumping. That means home purchases are still going down.
Bottom line, there is a long way to go before you can call a bottom in housing.
http://www.cnbc.com/id/24609981
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