Chicago, IL (PRWEB) May 19, 2014
In the latest May 14th Insights blog from Corelogic, the housing data provider showed that “the number of real estate owned (REO) properties increased 15 percent to 430,000” in March 2014. Peoples Home Equity finds the new uplifting in the majority of March still resided in the season of winter when real estate was in a seasonal slump.
REO properties rose among 46 states with Idaho leading the pack with a +90% rise between August 2013 and March 2014. In second was Maryland with a 78% rise, “followed by Nevada (up 70 percent), Oregon (up 47 percent) and North Dakota (up 42 percent).” Peoples Home Equity thought of the leading mix of states as interesting considering that Nevada and Maryland have differed in terms of housing volatility yet they both rose by roughly the same measure. One may have expected to see a higher rise in Nevada given its relatively discount real estate market to Maryland’s.
Corelogic explains how the growth in REO came about. “As lenders began to accelerate the foreclosure process in early 2012, investor demand for REO properties began to rapidly increase. Investor demand more than offset the acceleration of foreclosure resolutions and led to a rapid decline in the number of REO properties. However, investor demand began to drop off last September partly in response the twin impact of rapid price increases and the rise in mortgage rates. In addition, short sale activity reached its peak in late 2012 and early 2013 and began to decline in subsequent months due to the Mortgage Forgiveness Debt Relief Act of 2007.” However, “the combination of all these major factors began to coalesce during the fall of 2013 and led to a rise in the inventory of REO properties. While the level is lower than the peak in the crisis, it signals that the rapid improvement in the REO stock during the last two years is over and the market has entered a new phase as it continues to process the legacy of the foreclosure crisis.”
Peoples Home Equity notes that as the number of REO properties grows along with mortgage applications and home sales the consequence is usually higher mortgage rates. While mortgage rates have declined by an attractive amount for buyers over the past month, they have increased over the past two market sessions. Peoples Home Equity encourages readers who are prospective home buyers to prepare themselves for higher mortgage rates in the future by get pre-approved for a home loan now.
If interested in securing a competitive, lower rate mortgage, consider speaking with a Peoples Home Equity loan officer today details at: 262-563-4026