All the Real Estate News That’s Fit to RE-Print™
Welcome to our weekly edition of Real Estate Investing News This Week. Highlights this week include:
- Foreclosure Starts at Lowest Level Since December 2005
- Housing Production Falls 6.5%
- National Credit Default Rates Reach Eight Year Low
We hope these real estate news items help you stay up-to-date with your real estate investing strategies and inspire some profitable real estate deals for you.
RealtyTrac’s May Foreclosure Market Report™ showed a 26 percent decrease for foreclosure starts (which includes foreclosure filings, default notices, scheduled auctions and bank repossessions) from May 2013 — the lowest monthly level since December 2006.
Bank repossessions are at the lowest level since July 2007. Foreclosure auctions are at the lowest level since December 2006.
Declines in both single- and multifamily starts pushed nationwide housing production down 6.5 percent in May to a seasonally adjusted annual rate of just over 1 million units, according to newly released figures from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
However, single-family permits, which can be an indicator of future building activity, rose 3.7 percent.
Single-family housing starts were down 5.9 percent to a seasonally adjusted annual rate of 625,000 units in May. Meanwhile, multifamily production fell 7.6 percent to a seasonally adjusted annual rate of 376,000 units.
Data through May 2014, released by S&P Dow Jones Indices and Experian for the S&P/Experian Consumer Credit Default Indices showed decline in national default rates from the previous month.
The national composite posted 1.04% in May, the lowest default rate since May 2006.
Both auto and bank card saw their default rates increase while mortgage default rates decreased.
After setting new historic lows in March and April, the auto loan rate increased marginally by one basis point to 0.93%. The bank card rate was 2.97% in May, up 13 basis points over the prior month.
The first mortgage default rate continued its downward trend from 1.30% in October 2013 to 0.92% in May 2014.