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U.S. Housing Market Foreclosures August 2009

The biggest obstacle for the U.S. housing market is foreclosures. Moody's Economy.com is expecting 3.85 million defaults this year compared to 2.7 million last year, she said. First mortgage defaults are the first step in the foreclosure process; not all defaults turn into foreclosures.

Although the housing market has been showing signs of stabilization, with sales rising and home price declines moderating in many regions, Chen said prices likely will fall again.

"There are a large number of foreclosures in the pipeline and once they hit the housing market, they will pull house prices down again," she said. "I expect house prices to continue falling until mid-2010."

WEEKLY REFINANCING ACTIVITY REVERSES

The Mortgage Bankers seasonally adjusted index of refinancing applications decreased 7.2 percent to 1,853.8, following an increase of the same amount the previous week.

The refinance share of applications decreased to 52.3 percent from 54.2 percent the previous week, significantly lower than the peak of 85.3 percent in the week ended January 9. The adjustable-rate mortgage share of activity increased to 5.8 percent in the latest week, up from 5.4 percent the previous week.

Fixed 15-year mortgage rates averaged 4.71 percent, up from 4.60 percent the previous week. Rates on one-year adjustable-rate mortgages increased to 6.71 percent from 6.67 percent.

Hipotecas Prestamos August 12, 2009 11:11 AM

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