Foreclosures Down for 7th Straight Year
|Those looking for a great deal on a foreclosed home will have to wait longer as overall foreclosure activity continued to plunge annually for the 11th month in a row from last year.|
Foreclosure filings declined 22% from a year ago, according to the ATTOM Data Solutions’ Foreclosure Market Report.
“We are continuing to see a downward trend with overall foreclosure activity, especially in completed foreclosures declining year after year,” said Todd Teta, chief product officer at ATTOM Data Solutions.
Lenders completed foreclosures on 10,634 properties, a drop of 4% from the prior month and 50% from a year ago for the seventh consecutive annual decline, the report showed.
It also revealed that one in every 2,411 housing units had a foreclosure filing nationwide. New Jersey had the highest foreclosure rate, with a foreclosure filing on one in every 1,117 housing units.
What Happened to Rates Last Week?
|Mortgage backed securities (FNMA 4.00 MBS) lost -20 basis points (BPS) from last Friday’s close which caused fixed mortgage rates to move off of their lowest levels of the year.|
Overview: We had really strong Retail Sales and Industrial Production reports which helped to pressure MBS to move lower for the week which pushed mortgage rates up a “smidge”. We had very tame inflation data and continued uncertainty over China/U.S. trade negotiations and Brexit. Those factors provided very strong support for rates and kept rates from rising further.
Retail Sales: Overall, this is a solid report. The Headline Retail Sales MOM for May came in at 0.5% vs est of 0.6%, but April was revised upward significantly from -0.2% all the way up to 0.3%. When you strip our autos, Retail Sales gained 0.5% vs est of 0.3%. April was revised upward from 0.1% to 0.5%.
Production: Industrial Production for May came in at double the market expectations (0.4% vs est of 0.2%). Capacity Utilization hit 78.1% vs est of 78.0%. Overall, a good report.
Inflation Nation: The May Consumer Price Index (CPI) did not show any threat of inflation. The Core (ex food and energy) dropped to 2.0% from April’s pace of 2.1% and was below expectations of 2.1%. The headline CPI YOY actually dropped below 2.0% with a 1.8% reading vs estimates of 1.9%. The Atlanta Fed’s Business Inflation Expectations for the 12 months remained at 2.0% and longer term (5 years) at 2.7%
What to Watch Out For This Week:
It is virtually impossible for you to keep track of what is going on with the economy and other events that can impact the housing and mortgage markets. Just leave it to me, I monitor the live trading of Mortgage Backed Securities which are the only thing government and conventional mortgage rates are based upon.