With Prices Up and Foreclosures Down, Housing Remains Fragile

The housing market “remains fragile” with a mixed picture of recovery, the Department of Housing and Urban Development reported in its August Housing Scorecard, released this week.

“The fragility of the market is underscored by the fact mortgage delinquencies rose slightly in July,” the report states. However, it notes that home prices saw an increase for the third consecutive month in July, with foreclosure starts and completions showing a decline.

The Administration said it remains committed to its efforts to stabilize the housing market and to prevent avoidable foreclosures.

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The affordability index remains high, but has been on the decline recently, while mortgage rates remained near record lows, the report notes.

“The Administration’s efforts have helped millions of families deal with the worst economic crisis since the Great Depression,” the report states. “More than 5 million mortgage aid arrangements were started between April 2009 and the end of July 2011. While some homeowners may have received help from more than one program, the total number of aid offers is more than double the number of foreclosure completions for the same period (2.2 million).”

Additionally, the report makes not of the more than 28,000 homeowners who received permanent modifications through the Home Affordable Modification Program (HAMP) in July, with a total of 790,000 homeowners having received assistance to date.

View the August Housing Scorecard.

Written by Elizabeth Ecker

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  • This scoreboard is so “mobbed up” (for our friends from Chicago in particular and Illinois at large) that HUD has a difficult time figuring out what is what.  This may be the worst economic situation since the Great Depression BUT it is definitely THE WORST home market appreciation situation since the so called Spanish American War of American War in 1898 (perhaps much longer).

    From peak to valley the loss in home value was 31% in the Great Depression.  We are already over that percentage.  Now it is the end of the normal summer home sales season and where are we?  Where will home values go between now and year end?  They certainly will not be going up.

    Being “mobbed up” is NOT the fault of HUD.  But the buck stops within a couple of miles of HUD headquarters and it is not on some hill in DC.  This housing crisis now belongs in LARGE part to this President.  He did nothing when he had a dominating majority in Congress and is doing even less now other than keeping us in three (or more) major war conflicts rather than just two.

    So where are things going from here?  Perhaps in the direction of Solyndra?  You know the California company our President pointed to just two years ago as his version of the direction the US business community should take and which just petitioned for bankruptcy.

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