Signs Continue to Show Improvement in Housing Market

Filed under: Market Comentary

housing market increaseAs 2014 begins, there are signs of continued improvement in the housing market. Various reports focusing on a lower number of delinquencies, an increase in home construction, and a lower number of loan modifications is great news on the mortgage front.

A report from Mortgage News Daily shows that according to CoreLogic’s National Foreclosure Report for November, all of the usual measures of mortgage distress continue to decline. The report stated that serious delinquencies, completed foreclosures, foreclosures in process, and the shadow inventory are all down “substantially” from their respective peaks and the report also said that serious delinquencies are at a six-year low.

Some statistics that CoreLogic showed included:

  • From October to November, 2013, there was a decline in 2.6% of serious delinquencies
  • November delinquencies were down 26.3% from 12 months earlier
  • The national delinquency rate is now 5%, which is the lowest percentage since November, 2008
  • There was a 34% decrease in on homes in some stage of foreclosure in November compared to a year ago

According to Dr. Mark Fleming, chief economist for CoreLogic, “Nationally, loan performance continues to improve. The rate of seriously delinquent loans is at a new five-year low.”

Anand Nallathambi, president and CEO of CoreLogic added, “Consumer confidence is definitely up as the economic rebound gathers more steam.”

Another positive in the mortgage business is the construction increase. According to a report from the Census Bureau, spending on both single-family and multi-family home construction increased in November.

The Census Bureau report included these statistics:

  • Total monthly spending by builders for both residential and non-residential private construction increased 2.2% in October
  • Builders spent 16.6% more on private residential construction in November than they did a year ago
  • Single-family home construction spending was 18.4% higher than in November of 2012
  • Multi-family construction spending was 36.3% higher than in November of 2012

Yet another example of the housing market going in the right direction is based on numbers released by Fannie Mae. According to the report, Fannie Mae said:

  • delinquency rates for multi-family dwellings fell from 0.13% to 0.11% from October to November. The multi-family dwelling delinquency rate in November, 2012 was 0.28%
  • There was a 5% decline in completed loan modifications in November
  • The monthly delinquency rate for single-family homes in Fannie Mae’s portfolio declined from October to November from 2.48% to 2.44%. The last time delinquency rates were this low was in December of 2008

As you can see from these reports, the housing market continues to get better. If you are interested in buying a home or have any questions about anything dealing with the mortgage industry, please give me a call and I will be happy to discuss whatever is on your mind.





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