Market Studies

In the third quarter of this year, negative equity slipped further and now represents less than 30 percent of homeowners with a mortgage, Zillow revealed Thursday. According to a negative equity report, 28.2 percent of all homeowners with a mortgage remain underwater, a decrease from 30.9 percent in the second quarter. The 28.2 percent translates into about 14 million U.S. homeowners who owe more on their mortgage than their home's value.

Fixed mortgage rates dropped to all-time record lows amid indicators of higher consumer confidence and lower wholesale prices, according to Freddie Mac's Primary Mortgage Market Survey. According to the survey, the rate on a 30-year fixed-rate mortgage (FRM) averaged 3.34 percent (0.7 point) for the week ending November 15. The previous low record for the 30-year fixed was 3.36 percent, set the week of October 4 this year. The 15-year fixed average also fell to a new low, dipping to 2.65 percent (0.7 point) from 2.69 percent the week before.

The foreclosure inventory rate fell to 4.07 percent in Q3 to the lowest level since the first quarter of 2009, according to the latest delinquency survey from the Mortgage Bankers Association (MBA). In addition, the national delinquency declined to 7.40 percent, and the serious delinquency rate fell to 7.03 percent. In a commentary, Capital Economics suggested the combination of fewer homes in foreclosure and seriously delinquent loans points to a decline in shadow inventory.

Two weeks after tearing up the East Coast, Hurricane Sandy rocked first-time claims for unemployment insurance. In the first full week after the storm, initial claims shot up 78,000 to 439,000, the highest level since April 2011 for the week ended November 10, the Labor Department reported Thursday. Economists expected 376,000 initial claims filings.

Foreclosure rates increased on a monthly basis in October but remain well below last year's levels, according to the latest U.S. Foreclosure Market Report from RealtyTrac. Taking a closer look at market-level data, RealtyTrac found vast disparities in foreclosure activity across the nation. At a national level, foreclosures increased 3 percent in October, but they remain 19 percent lower than they were last October. In fact, despite the monthly increase, October is the third consecutive month in which an annual decrease in foreclosure starts took place.

The housing market is slowly but surely getting back up to speed, but don't expect it to recover to peak levels, Freddie Mac says in its latest U.S. Economic and Housing Market Outlook. In the November outlook, Freddie Mac takes into account recent trends, housing indicators, shifting demographic patterns to put together a picture of what makes a ""healthy"" housing market.

A specific provision in California's Homeowner Bill of Rights may have led to a surge in foreclosure cancellations, according to a report from ForeclosureRadar. Foreclosure cancellations in California spiked 62.1 percent from September to October and 36.7 percent over a one-year period, data from ForeclosureRadar revealed. The jump from September to October is the largest monthly increase since the data provider began tracking foreclosures in September 2006.

In the third quarter of this year, 29 percent of borrowers who refinanced opted for a shorter loan term, while only 3 percent chose a mortgage with a longer term, according to data from Freddie Mac. Most borrowers—68 percent—decided to maintain the same term on their loan.

In September, prices for commercial real estate increased 1.4 percent from August and 6.9 percent from a year ago, according to Moody's Investors Service's national all-property composite. The composite's components consist of the apartment and core commercial sectors. Compared to the January 2010 trough, commercial real estate prices were 28 percent higher, but prices still remain 21.8 percent below the December 2007 peak. Boston and New York led with the biggest yearly gains in commercial real estate out of six major metro areas measured.

Demand in the single-family rental market continues to expand even as inventory tightens, according to the latest MarketPulse report from CoreLogic. Comparing lease rates, supply, pricing, and the ratio between bid prices and asking prices clearly demonstrates an increasingly tightening market. Currently, the greatest amount of growth is occurring in North Port, Florida; Cape Coral, Florida; and Honolulu.