Evidence of the housing market’s recovery reports continued progress through July, according to the Obama Administration’s latest Housing Scorecard.
Fashioned by the Department of Housing and Urban Development (HUD) and the Department of the Treasury, the July Scorecard records progress across key housing indicators, such as home prices, purchases of new homes and sales of existing homes.
Home prices continued to show strong annual gains through July as the purchases of new homes and sales of previously owned homes strengthened.
The Federa Housing Finance Agency (FHFA) purchase-only index was up 7.3% from a year ago. Additionally, the Case-Shiller 20-city index was up 12.2% over the same period.
Purchases of new homes in June 2013 were up 38% from year-ago levels and are currently at the highest level in five years, according to the Scorecard.
Existing sales for the month were also up, rising 15% from June 2012.
The annual home price increases over the past several months have been at levels not seen since 2006, according to Kurt Usowski, HUD deputy assistant secretary for economic affairs.
“As we regain stability in our housing markets, it is time to begin the process of reforming the housing finance system to reduce the federal government footprint and ensure that private capital takes a sustainable central role,” Usowski said.
The Obama Administration’s efforts in its foreclosure mitigation programs also reported significant progress through July, providing relief for millions of homeowners as the nation continues to recover from an “unprecedented” housing crisis.
More than 1.7 million homeowner assistance actions have taken place through the Administration’s Making Home Affordable Program, including more than 1.2 million permanent modifications through the Home Affordable Modification Program (HAMP).
The more than one million homeowners who have received a modification through HAMP have saved approximately $547 on their mortgage payments each month, the Scorecard reports, which translates into 39% savings from their previous payment.
Quarterly re-default data also show that the performance of HAMP modifications continues to improve over time and exhibit lower delinquency and re-default rates than industry modifications as reported by the Office of the Comptroller of the Currency.
“The Administration’s HAMP program has provided direct assistance to more than one million homeowners while creating standards that have helped millions more,” said Treasury Assistant Secretary for Financial Stability Tim Massad. “HAMP was designed so that assistance would go to those homeowners most in need and that the modifications provided would be sustainable.”
Written by Jason Oliva