Foreclosures jump 7% in October from September Stockton, Calif., has highest rate of foreclosure filings

Nov. 10, 2011, 12:01 a.m. EST

Foreclosures jump 7% in October from September

Stockton, Calif., has highest rate of foreclosure filings

By Amy Hoak, MarketWatch

CHICAGO (MarketWatch) — Foreclosure activity rose 7% in October compared with September, a sign that lenders are picking up the pace after foreclosure processing problems caused delays, RealtyTrac said Thursday.

Last month, foreclosure filings were reported on 230,678 U.S. properties, according to RealtyTrac data. Filings include default notices, scheduled auctions and bank repossessions.

Appraisals derail sales

In the past, appraisals rarely disrupted a home sale. But real-estate agents and housing experts say new requirements and a difficult housing market are doing just that.

Activity is down 31% in October compared with a year ago.

“The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” said James Saccacio, chief executive of RealtyTrac, in a news release.

“However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real-estate recovery.”

In October, after 22 months in a row as the city with the highest foreclosure rate, Las Vegas finally ceded that standing to Stockton, Calif., according to RealtyTrac’s ranking of metropolitan areas with populations of 200,000 or more.

Default notices up 10%

Nationwide, default notices were filed for the first time on 77,733 properties last month. That’s a 10% increase from the prior month, but a 23% drop from October 2010.

In Florida, Pennsylvania and Indiana, default notices ticked up more than 25% in October, compared with September.

Foreclosure auctions rose 8% in October, compared with the prior month; auctions were scheduled on 85,321 properties. Scheduled auctions were down 38% from a year ago. But again, the number of scheduled auctions was up even more in select states: They increased more than 35% in Florida, Minnesota and Illinois in October, compared with September.

In October, 67,624 properties were repossessed by lenders, a 4% increase from September and a 27% drop from October 2010. In Michigan, Oregon, New Jersey and Indiana, repossessions were up 40% or more in October, compared with the prior month. 

30-year mortgage falls below 4% again Rates on adjustable-rate mortgages up in latest survey: Freddie Mac

Nov. 10, 2011, 10:52 a.m. EST

30-year mortgage falls below 4% again

Rates on adjustable-rate mortgages up in latest survey: Freddie Mac

By Amy Hoak, MarketWatch

CHICAGO (MarketWatch) — Average rates on 30-year fixed-rate mortgages fell below 4% for the second time this year, according to Freddie Mac’s latest survey of conforming mortgage rates.

Rates on the 30-year mortgage averaged 3.99% for the week ending Nov. 10, down from 4% last week and 4.17% a year ago, McLean, Va.-based Freddie Mac said Thursday.

Rates on 15-year fixed-rate mortgages also dropped slightly, averaging 3.3% this week, down from 3.31% last week and 3.57% a year ago.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 2.98% this week, up slightly from 2.96% last week. The ARM averaged 3.25% a year ago.

And 1-year Treasury-indexed ARMs averaged 2.95% this week, up from 2.88% last week. The ARM averaged 3.26% a year ago.

To obtain the rates, the 30-year fixed-rate mortgage required payment of an average 0.7 of a point, the 15-year fixed-rate mortgage required an average 0.8 point and the ARMs required an average 0.6 point. A point is 1% of the mortgage amount, charged as prepaid interest.

“Fixed mortgage rates were little changed this week amid a mix of economic data reports,” said Freddie Mac chief economist Frank Nothaft in a news release.

“The economy added 80,000 net jobs in October, below the market consensus forecast, but employment gains over the prior two months were revised up by 102,000 and the unemployment rate fell to 9%, the lowest in six months. Factory orders improved in September, yet the expansion in the service industry slowed in October,” he said.

Low home prices and mortgage rates have kept affordability high, Nothaft said, adding that the National Association of Realtors’ housing affordability index in September hit its third highest reading on record. 

30-Year Fixed-Rate Mortgage Averages 4.00 Percent

30-Year Fixed-Rate Mortgage Averages 4.00 Percent

MCLEAN, Va., -- Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average mortgage rates declining sharply as investors rushed to U.S. Treasury bonds amid concerns over the European debt market. The 30-year fixed at 4.00 percent marks the second lowest reading since it hit a record 3.94 percent in the October 6, 2011 PMMS, the lowest in history. 30-year fixed-rate mortgage (FRM) averaged 4.00 percent with an average 0.7 point for the week ending November 3, 2011, down from last week when it averaged 4.10 percent. Last year at this time, the 30-year FRM averaged 4.24 percent. 15-year FRM this week averaged 3.31 percent with an average 0.7 point, down from last week when it averaged 3.38 percent. A year ago at this time, the 15-year FRM averaged 3.63 percent. 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week, with an average 0.6 point, down from last week when it averaged 3.08 percent. A year ago, the 5-year ARM averaged 3.39 percent. 1-year Treasury-indexed ARM averaged 2.88 percent this week with an average 0.6 point, down from last week when it averaged 2.90 percent. At this time last year, the 1-year ARM averaged 3.26 percent. Frank Nothaft, vice president and chief economist at Freddie Mac, "Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates. Meanwhile, on the home front, the U.S. economy continued its gradual recovery. The Bureau of Economic Analysis reported the economy grew 2.5 percent in the third quarter, the strongest pace in a year, led by a surge in consumer expenditures. In addition, consumer spending rose 0.6 percent in September, nearly threefold that of August. Finally, consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose for the second month in a row in October to its highest reading since July."