The pace of foreclosures is decline, and the “serious default rate” is at a five-year low, according to The Street.
Even though the rate of foreclosures in November 2013 was more than double the rate in the pre-crash days, the rate is still slowing. The November number of completed foreclosures was 46,000, with 812,000 homes in some stage of foreclosure. This represents a decline of 29 percent from November 2012.
The news is encouraging many, who see the declining foreclosure rate as a sign that the housing market is starting to pick up, and that the economy is improving. However, there is still a bit of difficulty in the housing market because about 4.7 million homes have been lost to foreclosure since September 2008, according to The Street.
Now, though, with foreclosures declining, and home buying picking up, prices are on the rise again. Additionally, with the Federal Reserve starting its taper of the economic stimulus, Treasury yields are rising — and with them mortgage rates.
There are concerns that more foreclosures could be coming, though. Even though the pace has slowed, there are still a few more loans that might be subject to foreclosure as seven-year resets hit strapped homeowners. Also, without employment picking up, there is a chance that more people will have a hard time making their payments.
For now, though, the picture of the foreclosure situation is encouraging, and there are hopes that matters will improve going forward, thanks to programs designed to prevent foreclosure.