NATIONAL Housing Market Update: Foreclosures Decline Again
Foreclosure activity decreased in April for the seventh straight month, bringing total foreclosure activity to a 40-month low, according to a new report from RealtyTrac.
"This slowdown continues to be largely the result of massive delays in processing foreclosures, rather than the result of a housing recovery that is lifting people out of foreclosure," notes RealtyTrac CEO James Saccacio in a statement.
Certainly there are more foreclosures on the horizon, but this legal bottleneck will be around for awhile. This means that a massive wave of additional inventory will not be hitting the markets during the peak purchasing season. Inventory levels are the key to home prices and any stabilization in those inventory levels regardless of the reason is welcome news to the housing industry even if it is only temporary.
What Happened to Rates Last Week:
Mortgage backed securities (MBS) barely moved and lost only -3 basis points last week which helped to keep 30 year fixed rates at fantastic levels. Mortgage rates continue to enjoy artificial support due to weakness in Europe - particularly with Greece and Portugal. Concerns over their massive debt restructuring has investors very concerned about the stability overseas and as a result they continue to purchase U.S. Treasuries and Mortgage Backed Securities which help to keep our rates low due to the extra demand.