Complete Foreclosures Decline 29% Year Over Year in November

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Peoples Home Equity comments on the latest report from Corelogic

Core logics latest National Foreclosure Report, posted on January 9th, 2014 shows completed foreclosures are down 29% year-over-year in November. Peoples Home Equity is quite impressed with this latest report as both foreclosure inventory and shadow inventory declined considerably over the past year.

Foreclosure inventory declined -34%. A decrease in foreclosure inventory is usually directly related to increasing home prices, which we have seen over the past year. On a monthly basis foreclosures declined a constructive-8.3% from October, not as good as in October which saw a decline of -14%, but far better than September which saw an increase of 16%. The top 3 states with the highest foreclosure inventory in November were Florida at 6.6%, New Jersey at 6.5% and New York at 4.7%. The 3 state with the lowest foreclosure inventory rates were Wyoming at 0.4%, Alaska at 0.5%, and North Dakota at 0.6%.

Shadow inventory also declined by -24%. As a reminder shadow inventory can be homes in foreclosure and have not yet been sold or home owners not putting their property on the market until values increase.

Peoples Home Equity believes this news regarding declining foreclosures and shadow inventory adds strength to the already positive trend in home prices. The lender also thinks it gives the Federal Reserve the confidence to raise interest rates soon when unemployment hits the government target of 6.5%. Typically governments raise interest rates, which directly affect mortgage rates, to protect against a market bubbles forming due to excessive borrowing. However, given that mortgage applications are at multiyear lows and a lack of home listings are on the market, Peoples Home Equity does not see any symptoms of a bubble forming at this time. In fact, the lender encourages home buyers to apply for a home loan now before both mortgage rates and home prices increase further. Apply now before home loans become less affordable!

Please contact Peoples Home Equity loan officer today for mortgage details at: (855)-897-0300

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Giorgio U Ferrero
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