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SEM News, thinkMortgage™

March 2017 Cal-Culator

SEM News, thinkMortgage™: April 18th, 2017

For the third month in a row, Atlanta’s residential real estate index has hit a record high. After rising 0.1 last month, the index now stands at a record-8.2. The index experienced continued growth as data reveals more people are on time paying their mortgage, residential real estate construction spending is up, first time homebuyers continues to rise and home prices are seeing record highs in 11 states, including Georgia.

CoreLogic’s Home Price Report revealed home prices rose by 7 percent from February 2016 to February 2017, causing 11 states to see new record high home prices . Georgia’s prices rose 6.7 year-over-year with a forecasted 3.4 year-over-year percent change. Single-family home prices are expected to reach a new record peak in October 2017.

According to the American Bankers Association’s (ABA) 24th annual Real Estate Lending Survey, the percentage of single-family mortgage loans for first-time homebuyers increased from 15 percent in 2015 to 16 percent in 2016, a record high in the survey’s history. On the servicing side, foreclosure rates among the banks surveyed by the ABA dropped more than a quarter percent from 0.63 percent in 2015.

Private residential construction spending increased by 1.8 percent between January and February and rose 6.4 percent over the past 12 month, according to the Associated General Contractors of America. Spending on multifamily residential construction increased 2.0 percent for the month and 10.6 percent year-over-year, while single-family spending climbed 1.2 percent for the month and 3.4 percent from a year earlier.

National Mortgage Professional Magazine reported it appears more people are paying their mortgages on time. New data reveals 5.3 percent of homeowners were delinquent by at least 30 days or more (including those in foreclosure) on their mortgages in January, a 1.1 percent year-over-year decline from the 6.4 percent level set in January 2016.

The foreclosure inventory rate was 0.8 percent in January, down slightly from the 1.1 percent rate in January 2016, while the serious delinquency rate—defined as 90 days or more past due including loans in foreclosure—was 2.5 percent, down from 3.2 percent one year earlier. Also on the decline were early-stage delinquencies, defined as 30-59 days past due: that rate measured at 2.1 percent in January, below the 2.4 percent level of January 2016. The share of mortgages that were 60-89 days past due in January was 0.7 percent, a scant dip from 0.8 percent one year earlier.

“The 30-plus delinquency rate, the most comprehensive measure of mortgage performance, is at a 10-year low and rapidly declining,” said Frank Martell, president and CEO of CoreLogic. “While late-stage delinquencies remain in the pipeline in selected markets, early-stage delinquency performance is stellar and the lowest it’s been in two decades. The continued improvement in mortgage performance bodes well for the health of the market in 2017.”

If you want to learn even more, CoreLogic’s revealing “United States Residential Forecosure Crisis: 10 years later” is a great dive into how far we’ve come since 2007.

The next Cal-Culator will be released May 9 and could reflect a four-month record streak.

 

 

 

 

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