Regarding of the market’s focus upon Europe, we continue to get good news at home. First time unemployment claims fell to their lowest level in nine months–385,000. Also from around the web…
In its annual delinquency forecast, TransUnion projects that mortgage delinquency will rise to about 6 percent through the first quarter of next year. However, the rate could fall to 5 percent by the end of 2012 — well off the fourth-quarter 2009 peak of 6.89 percent. TransUnion’s outlook considers such factors as expectations that consumer confidence and the economy will improve next year. Source: CBS News
Nearly 2 million borrowers have been able to save their homes from foreclosure, with more than 1 million receiving permanent workouts, due to foreclosure prevention efforts at Fannie Mae and Freddie Mac since they entered conservatorship in 2008. A Federal Housing Finance Agency report shows that foreclosure prevention activity increased in the third quarter, and two-thirds of borrowers who received modifications in those three months had their month ly payments reduced by more than 20 percent. Also, cumulative refinancings through the Home Affordable Refinance Program rose 11 percent during the quarter to nearly 928,600 loans. Source: Economic Times
What does this mean? We are recovering. You may not be able to feel it yet–but the recovery is coming. The real estate industry has always been cyclical and granted the last two cycles up and down have been brutal. But the next cycle is on the way. I can just feel it.