Market Studies

Data from CoreLogic shows 54,000 homes were lost to foreclosure in February of this year, a 7 percent decline from January's downwardly revised 58,000. The data provider reported a steeper 19 percent year-over-year decrease for completed foreclosures. ""February's 54,000 completed foreclosures is the lowest level nationally since September 2007, with most major metropolitan areas experiencing improvements,"" said Dr. Mark Fleming, chief economist for CoreLogic.

Foreclosure inventory seems to be making a comeback after experiencing steady declines following the national mortgage settlement, RealtyTrac revealed in a report Thursday. In the first quarter of 2013, the number of properties that were in the foreclosure process or bank-owned rose 9 percent year-over-year to 1.5 million, according to data from the online foreclosure marketplace. The most recent figure represents a 12 percent increase from the five-year low seen in May 2012. The report also found 35 percent of the homes in the foreclosure process were abandoned by the homeowner.

According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.57 percent (0.8 point) for the week ending March 28, up from 3.54 percent the previous week. Last year at this time, the 30-year FRM averaged 3.99 percent. Bankrate.com reported slight decline in the 30-year fixed average, meanwhile. According to the site's weekly survey, the average 30-year rate fell from 3.78 percent to 3.75 percent in the last week.

As of the end of December, 89.4 percent of mortgages were still current and performing, an increase from 88.6 percent in the third quarter and an improvement from 88 percent during the same quarter a year ago, the Office of the Comptroller of the Currency (OCC) reported. Servicers also began a fewer number of foreclosures after initiating 156,773 new foreclosures in Q4, the the lowest number since Q1 2008, which is when the OCC began the report. In addition, servicers helped borrowers remain in their homes by implementing more home retention actions than home forfeiture actions.

First-time claims for unemployment insurance jumped 16,000 to 357,000 for the week ended March 23, the strongest jump since mid-February, the Labor Department reported Thursday. Meanwhile the number of continuing claims for the week ended March 16, reported on a one-week lag, fell 27,000 to 3,050,000, the lowest level since June 2008.

Real gross domestic product (GDP) rose at an annual rate of 0.4 percent in the fourth quarter, the Bureau of Economic Analysis reported Thursday. The report, coming just three days before the end of the first quarter, was an improvement over the first two GDP reports that showed the economy contracted by 0.1 percent then improved by 0.1 percent. At 0.4 percent, the annualized fourth-quarter growth rate was the weakest since Q1 2011, when the economy grew at 0.1 percent. While the revised numbers are hardly anything to get excited about, they could give the economy a running start as it heads into the second quarter.

The National Association of Realtors' (NAR) Pending Home Sales Index (PHSI) fell 0.4 percent to 104.8 in January, the third month-over-month decline in the last four months, the association reported. Economists had expected a 0.7 percent drop to 105.2 from January's originally reported 105.9 The January index reading was revised to 105.2. NAR chief economist Lawrence Yun attributed the drop in the PHSI to weak inventory of existing homes for sale.

Radar Logic reports a seasonal price dip in January but a 12.7 percent increase year-over-year. The firm continues to find heavy investor influence in many markets, though investor activity may be shifting somewhat into new markets. Radar Logic's RPX Composite Index, which measures prices in 25 metros, posted a 2 percent decline in January. Prices remain 31 percent below their June 2007 peak. Institutional investors are playing an active role in many markets but appear to be shifting out of some markets where they previously played a major role and into some smaller markets previously largely ignored by the group.

Single-family home sales in Massachusetts were down year-over-year in February after 13 consecutive months of increases, The Warren Group reported. Home sales for February stood at 2,246, down 5 percent from 2,366 sales in February 2012. According to the real estate data provider, February marked the first decrease since December 2011.

The mortgaged delinquency rate in February slipped below 7 percent, according data from Lender Processing Services, Inc. (LPS). On Tuesday, LPS provided an early look at month-end mortgage performance data for February and found the delinquency rate is at 6.80 percent, down 3.16 percent from January's 7.03 percent and a decrease of 6.51 percent from February 2012. At the same time, the foreclosure pre-sale inventory rate averaged 3.38 percent, which represents a 0.98 percent month-over-month decline and a 19.58 percent decrease year-over-year.