Mortgage Rate News

Even as some wonder whether the housing market has reached bottom, there is evidence that it might not have. Information regarding Quarter 2 housing numbers show that foreclosures are on the rise. CNN Money reports on foreclosures that are on the rise:

“Most areas of the country are seeing at least some increase in foreclosure activity,” said James Saccadic, CEO of RealtyTrac, an online marketer of foreclosed homes. “Forty-eight of 50 states and 95 out of the nation’s 100 largest metro areas experienced year-over-year increases in foreclosure activity.”

The information represents an increase of 14% from the first quarter of the year, and a gain of 121% since the same time last year. Here are the homeowners that are lumped into numbers reflecting foreclosures:

• Lost a home to foreclosure.
• Received a notice of default.
• Received a warning of a pending auction.

And, of course, this also means that projections for total foreclosures are on the rise. Last year, in October, the prediction was that there would be 2 million foreclosures by 2009. However, halfway through 2008, there are 1.4 million foreclosures. This means that there is a strong likelihood that there will actually be close to 3 million foreclosures by the end of the year, unless the pace slows up.

The implication is also that Federal programs to help homeowners, such as Hope Now, isn’t doing a whole lot to stem the rising tide of foreclosures. It appears that with falling home values and continually resetting mortgage interest rates, homes are just getting beyond the reach of many of the people who them. On top of that, a faltering economy in which jobless claims are on the rise aren’t much help, either. Also, food and transportation prices are also cutting into available money for mortgage payments.

Tags: foreclosures, mortgage payments, home mortgage loan, mortgage loan blog,
Hope Now, jobless claims, economy