Market Studies

Lender Processing Services, Inc. (LPS) offered an early look into delinquency and foreclosure trends for November. The data provider found the delinquency rate increased slightly to 7.12 percent from 7.03 percent in October, representing a 1.2 percent increase. Compared to November 2011, the delinquency rate has fallen by 9.06 percent. The foreclosure pre-sale inventory rate decreased to 3.51 percent, with inventory falling monthly and yearly by 2.84 percent and 16.42 percent, respectively.

Personal income jumped 0.6 percent in November--twice what economists forecast--improving $85.8 billion, while spending rose a hefty 0.4 percent, the Bureau of Economic Analysis. The growth in spending matched economists’ forecasts.

Industry data suggests by the end of 2010, more than 5 million homes had been foreclosed as a result of the recent housing crisis, and some anticipate another 8 million to 10 million more foreclosures will make their way through the pipeline over the next few years. However, as the National Law Center on Homelessness and Poverty (NLCHP) points out, this is only part of the picture. About 20 percent of all foreclosed properties have been rental properties, according to a recent NLCHP report. In fact, about 40 percent of all families evicted in foreclosure are renters not owners, according to NLCHP.

Year-to-date, Fannie Mae and Freddie Mac have refinanced nearly 800,000 loans through the Home Affordable Refinance Program (HARP), the Federal Housing Finance Agency reported Thursday. Since HARP's 2009 inception, the program has refinanced 1.8 million loans, with 790,619 of those loans refinanced in 2012 as of October. In October alone, more than 81,613 homeowners were refinanced through the program. Underwater loans continued to find relief through the program, with a little less than half of the loans refinanced in October in negative equity.

Mortgage rates went in both directions this week as investors mulled over recently released data on inflation and housing construction. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.37 percent, up from the previous week's 3.32 percent. On the other hand, the 15-year fixed fell one basis point to 2.65 percent. Bankrate's weekly national survey of mortgage rates saw its biggest week-to-week increase since March, with the benchmark 30-year fixed averaging 3.62 percent--a 10-basis point jump.

The winter season has not stopped home prices from posting both monthly and yearly gains, according to recent reports, and the Federal Finance Housing Agency's (FHFA) October home price report was no different. According to the agency's Home Price Index (HPI), home prices in October rose 0.5 percent from September and 5.6 percent from October 2011. The index current sits 15.7 percent below the April 2007 peak.

Existing-home sales rose 5.9 percent in November to a seasonally adjusted annual rate of 5.04 million, the highest level since November 2009, the National Association of Realtors reported Thursday. Economist had expected the sales pace to improve to 4.9 million. The median price of an existing single-family home rose to $180,600 in November, up 10.1 percent from November 2011. November was the ninth consecutive month to see year-over-year price gains, maintaining the longest streak for yearly improvements since mid-2006.

Real GDP growth for the third quarter was revised up again, the Bureau of Economic Analysis reported Thursday, reaching a 3.1 percent annualized growth rate. It was only the third time in the last five years the quarterly growth rate topped 3.0 percent. Economists had forecast a 2.8 percent growth.

First time claims for unemployment insurance increased 17,000 to 361,000 for the week ended December 15, the Labor Department reported Thursday. Economists expected claims to increase to 359,000. The previous week’s report was revised upward to 344,000 from the originally reported 343,000, an unexpected sharp drop of 27,000 initial filings.

The largest counties in the country displayed strong home price growth in November, but sales were weak, according DataQuick's most recent Property Intelligence Report (PIR). The company's PIR tracks valuation, REO inventory, and sales trends in the 42 largest counties on a monthly, quarterly, and yearly basis. Among the findings, DataQuick reported prices grew in 41 of the 42 counties month-over-month in November, and all 42 counties showed quarterly and yearly home price growth. Sales were dismal for the most part, with sales increasing in only 13 of the 42 reported counties month-over-month.