Home foreclosures see a 'notable' increase amid ongoing cost-of-living crisis

raising interest rates can do jus that.....

 

Many things are making housing unaffordable. The same factors that affect owned homes affect the costs of rent.
The number one issue is inflation. This has raised the price of a home substantially in the last 4 years, in some cases- doubled it. The next issue is the interest rates. If the interest is 3% on a $100K mortgage, $250 of the monthly payment is interest. If the interest rate is 6%, $500 of the payment is interest. That impacts the value of home you can qualify to buy, reducing it substantially.
Four years ago, you could get that 3% loan. Today, the best is a 6% loan. Combine the impact of inflation and interest rates, and you have a huge shift in the affordability of housing. You also have a condition where a significant number of people who had the ability to buy their own home 4 years ago- now have no way to do so. Some of those who did buy and were already at the limits of their financial position, are overwhelmed by the increases of costs due to taxes and insurance climbing at the same scale as the value of property- increasing their payments beyond their abilty to keep up.

There is an old truth that has not changed, in that rent still pays all the costs, but accumulates no equity. That still makes home ownership the best investment for most people; thus- the demand continues.

The answer is- economic stability. That mean inflation under control, supply lines working, and materials are available in sufficient quantity to keep competition regulating prices.
"Order" is the word covering all these things.

Most of us realize that Congress, the primary factor that can establish that condition- is itself in chaos. When Congress can get it's own house in Order, then- and only then- will it have the ability to focus on our houses, and get the national economic picture stable again.

 

Do what? Raise interest rates on existing mortgages?

 

some, yep, and even future one, interest rates been high for a while now

 

Don't forget the SALT act, and the limit for first time home buyers. $10k is too small for most people. Without SALT, people would be able to recover some of the interest rate costs.

 

You keep saying 'good folks'. I'm not saying they aren't, but you can't say they are.

Perhaps they, like so many, bought homes that were far too expensive for them to continue paying. We've seen that before and we'll see that again.

 

“Foreclosures are up just 1% from the same time one year ago“

Foreclosure rates a year ago were at record lows ?

He is this gloom and doom ?

 

Yes they have but the percentage of adjustable rate mortgages are way low. These higher interest rates may push more people into them though

 

30 year mortgage rate today- 7.6% That means interest alone will be $7600 per year or $6333 of your monthly payment on a $100,000 loan. Then, add property tax and insurance. What's left between that and the maximum payment you can support is what's left to pay for the house. If you buy but have streched your budget to the limit, the potential of increase in payment due to tax and insurance inflation- can easily cause default.

Celebrity real estate agent Mauricio Umansky is sounding the alarm over the "perfect storm of total unaffordability" brewing in the housing market.
"We’ve got super high interest rates above 7%. Mortgage applications are as low as they’ve been since 1995. And then we’ve got no supply," he said during his appearance on "The Claman Countdown" Wednesday.

The National Mortgage Pro report highlighted a 28% surge from the previous quarter, totaling 124,539 U.S. properties with foreclosure filings. This represents a 34% increase from the same period last year. In September 2023 alone, filings spiked to 37,679, marking an 11% jump from August and an 18% increase year over year.

For many years, I owned a design-build construction company. Right now, I have an investment home in the process of renovation. I know the costs, and I'm following the market for this property.
I paid more than the appraised tax value to buy it. Spent as much in improvements as the house cost. Will be selling the house in the spring- and net three times the price paid. This house will sell in less than a week, in part because it is in the current most-sought price range. The hitch is that more rate increases would cut out more potential buyers.

The market from the standpoint of a buyer- is not looking good.

 

Biden has a big lead in donations so far. Some folks suggest republicans are saving up for general election.

 

Republicans have sent Trump all their money, they wont have any for other republicans come the general.... and they will blame it on Biden

 

Sure.

 

Ya like a Leftist hyperbolic tiny riot and flu bug were the closest modern man has come to extinction. Thank God they still have global warming extinction

 

A question that seems rather obvious is if the money will make any difference. I don't think there is enough money for Biden to buy this election. But then they already know there is more than one way to skin a cat, as the saying goes. They will try, one way or another.

 

or, perhaps they are folks who bought their homes, could make their payments and then inflation tore into their income. We both can play the game of perhaps but it seems that you must do that to try and justify your all-things-Democrat position.

here's one, perhaps if there never were the Democrat exec orders of Jan 2021 against fossil fuel we would not be in this soup

perhaps if we did not implement more anti-business regulations by the bureaucrats then things would not be so bad for regular folk

I have an even better one; perhaps the regular folk will turn off NPR, ABC et al and use their own eyes to see what is happening

 

As a loyal, Democrat - voter, is your position that it's a good thing that more folks are losing their homes?

Your post sure seems to suggest that. or, are you trying your best, as a loyal, Democrat-voter, to make a case that things are just swell? Tell that to the folks losing their homes

 

You haven't noticed that there is no significant differences between Donkeys and Elephants. We are governed by a Uniparty, a Duopoly. That renders your question essentially irrelevant and trivial.

 

Lol.

If ask these indicators happened during Trump, you would be one of the first to blame him.

Being objective is such a foreign thought.

 

Clearly if we weren't still dealing with elevated inflation caused by irresponsible spending, including sending ridiculous amounts of money to Israel and Ukraine, accommodating the costs of hundreds of thousands of migrants flooding our border, and passing out debt forgiveness in a vote buying scheme... maybe we could get the root causes of inflation under control and reduce the cost of living.

But, somehow all those decisions don't weigh into the equation, they are too inconvenient for the partisan agenda.

 

Foreclosure rates started to tick up slightly in 2020….hmmmm, I wonder what happening in 2020 that could have caused that ? But your “doom and gloom” throw doesn't hold because the uptick was expected as the economy lags 1-2. Years based on a presidential policy. BUT, congress has a much greater impact on the economy than a POTUS…and 8 years prior to the uptick was republican control of the house, and 6 years of the senate….hmmmmm…

https://www.attomdata.com/wp-conten...reclosure-Filings-Historical-Q3-2023.jpg.webp

 

Interest is not the problem, home prices are the problem. I purchased my home 9 years ago for $215K. Zillow now values it at $371K. This is why Gen Z is turning into the rental generation. Their opportunity for financial security is being removed from them. The interest rate will affect this but the overpriced cost of housing will affect it far more.

If we had a 5 year moratorium on all immigration, housing prices would fall dramatically and homes would once again be affordable for the youngest generation. The constant flood of immigrants (legal and illegal) is impoverishing an entire generation of Americans. This is a kind of generational war with the baby boomers looting out the zoomers. Home owners like me make bank while our children and grandchildren are left with nothing.

 

I think we've already gone through this.
Here's your headline:
BIDEN ON PACE FOR YET ANOTHER HISTORICALLY LOW FORECLOSURE RATE. BIDEN OVERSEES 3 OF THE 4 YEARS WITH THE LOWEST FORECLOSURE RATE OVER THE LAST 20 YEARS!!!!!!! LOOKING TO MAKE IT 4 OUT OF 5!!!!!

Seriously, once again SEC doom and gloom with no context is exhausting.
Obviously the 2021 numbers are due to a moratorium from the banks, and obviously the numbers are expected to go up because you will have the usual foreclosure rate PLUS those that got a reprieve in 2020 and 2021 but weren't actually in a position to avoid foreclosure.
So go ahead, and try to sell that the rate of foreclosure is increasing, I will show you that the foreclosure rates under Biden are historically very very low

 

Who stands to gain from saying everybody does it? It's never the good guys.
There is indeed a difference in the philosophies of political groups. In a "pissing match" both may be involved- but one will have initiated it, and the other is not there by choice.

The people who start that are lowering the bar- usually, because they can't come up to it otherwise. The tactics of inversion and denial, of trying to flip the picture is one of the prime means of dodging responsibility for who you are, and diminishing the perception of your opponents at the same time. AKA, dirty tricks that only truly unscrupulous people will sink to.

While we do have a two-party system, the goal for both should be the same- to make America work. It's reasonable to have different views on how to do the job. But when you plan is to bring the country down to your level instead of bringing your level up to that of the country... That group is the one bent on destroying democracy and the American dream.

That's how you tell the difference in the face of a blizzard of BS.
That's why we have 7 million illegals allowed in to enter the country, being given hand-outs and accommodations at the expense of the taxpayers.
The oath of office says you will protect the Constitution of the United States against all enemies, foreign and domestic. That includes people in office, if they become a domestic enemy.
Can't imagine a worse one.

 

LOL at the guy decrying high interest rates putting home buying out of reach for many buyers...who just tripled the buying cost of a house.
Nothing wrong with making a buck using your skills, seeing a market and filling it, I just really really really dislike house flippers. Nothing personal.

 

Property values are going up everywhere, and it has nothing to do with politics, real estate has always increased in value over time.

If one itemizes on their income taxes, then one would have no doubt about the effect of claiming interest on Schedule A of ones income taxes.
https://www.irs.gov/forms-pubs/about-schedule-a-form-1040