Market Studies

First time claims for unemployment insurance rose to 383,000 up from the prior week's 373,000, revised up from the previously reported 370,000, the Labor Department reported Thursday. Economists had expected the report would be unchanged at 370,000 initial claims.

For pre-foreclosure homes, which are residential properties in default or scheduled for auction, sales were at their highest quarterly level since the first quarter of 2009, according to RealtyTrac's foreclosure sales report. Pre-foreclosure sales, which are typically sold through the short sale process, accounted for 12 percent of all sales during the first quarter. Pre-foreclosure homes sold for an average price of $175,461 in the first quarter, a 10 percent decrease from a year ago. The average pre-foreclosure sales price was the lowest in the history of RealtyTrac's foreclosure sales report, which began in the first quarter of 2005.

The aggregate value of Commercial Real Estate (CRE) loans increased to 88.1 percent as of April 30, 2012 from 87.3 percent as of the end of March and from 80.9 percent as of April 30, 2011, according to DebtX. The increase in April marks the fourth straight month CRE loan values rose.

In April, the number of completed foreclosures was 66,000, down 15 percent compared to the same month a year ago when there were 78,000 completed foreclosures. Month-over-month, the number of completed foreclosures remained unchanged. The number of homes in foreclosure inventory as of April 2012 shrank slightly from 1.5 million homes a year ago to 1.4 million. Among the five states with the highest number of completed foreclosures - California, Florida, Michigan, Texas, and Georgia - only Florida is a judicial state. These states alone account for 48.8 percent of all completed foreclosures nationally.

The stigma associated with foreclosure purchases has apparently faded with interest in foreclosures nearly tripling in the past two years, according to a survey released Wednesday by Realtor.com. The survey, conducted over 1,004 phone interviews at the beginning of May, suggested that homebuyer interest in foreclosures has jumped 159 percent since October 2009, when foreclosures made up 29 percent of all home sales. The vast majority of buyers said they would want to live in their foreclosure purchase, with 92.1 percent looking for a home to live in and only 6.9 percent looking for foreclosure investments.

The Pending Home Sales Index (PHSI) gave back its entire March increase in April, falling to 95.5 from 101.1 one month earlier, the National Association of Realtors reported Wednesday. The March index was revised downward from the originally reported 101.4 adding to the gloomy report. Economist had expected the index to increase 0.5 percent from March.Even with the decline though, the index is up 14.4 percent since April 2011, but is now at its lowest level since December, dampening expectations at the onset of the home-buying season.

A foreclosure prevention agency found that the pending expiration of the Mortgage Debt Relief Act of 200 is prompting struggling homeowners to strategically default on their loan. YouWalkAway.com conducted a national survey and found 34 percent of respondents indicated that the act, which is set to expire December 31, 2012, contributed to their decision to walk away sooner rather than later from their property. The Mortgage Debt Relief Act releases homeowners from the obligation of paying taxes on mortgage debt forgiven from a short sale, foreclosure or modification.

Following the release of the first quarter 2012 Case-Shiller Home Price Indexes, economists from IHS Global Insight and Capital Economics offered their take on whether the data indicates the market is stabilizing or still searching for a bottom. Patrick Newport and Michelle Valverde, U.S. Economists for IHS Global Insight, said it depends on where you are since prices are driven by local forces such as foreclosure rates and job growth.

The Case Shiller Home Price Indexes fell for the seventh straight month in March. The drop in the broader 20-city index was barely noticeable - down to 134.10 from 134.14 in February - while the 10-city index fell to 146.61 from 146.74. Year-over-year, the 10-city index was down 2.8 percent and the 20-city index off 2.6 percent, improving from February. The national Case Shiller Index, reported quarterly, was down 2.0 percent in the first quarter and down 1.9 percent from the first quarter of 2011. All three composites posted the lowest levels since mid-2006 when the housing crises began.

Consumer confidence is at a level that hasn't been seen for years, according to the results of Thomson Reuters and the University of Michigan's Survey of Consumers for May. Thomson Reuters and UM released the findings of the consumer survey, revealing that the consumer sentiment index improved to 79.3 percent in the month of May, an increase of 3.8 percent from April and 6.7 percent from May 2011. Consumer confidence has improved in each survey for the past nine months, but May's level is the highest since October 2007.