I would first of all like to discuss the Foreclosure situation here in the triangle and how the trend is looking with regards to things improving for the Foreclosure picture.
According to Realty Trac, which is an online foreclosure reporting data source, North Carolina foreclosures are down 32% from the same time a year ago.
I’d like to give you some local data results as well from the Raleigh, Cary and Durham MSA’s (MSA stands for Metropolitan Statistical Area) regarding foreclosures.
The Durham MSA recorded 740 foreclosure findings in the first half of 2009 – that total figure is down almost 50 percent from the first half of 2008.
The Raleigh/Cary MSA which is combined was down almost 25 percent from the first half of 2008 with 2024 foreclosure filings recorded for the first six months of the year.
Durham came in at number 162 on the Realty trac list of foreclosure fillings with a foreclosure rate of .35 percent - Raleigh/Cary came in at number 145 on the list with a foreclosure rate of .48 percent. The higher the list number, the better the foreclosure situation for that particular MSA – so in this case the Triangle is doing much better than many areas across the United States.
We’ve recently seen a slight uptick in interest rates – the rate volatility seems to have settled within a fairly small range over the past few weeks - and due to that increase in rates, we have seen a recent slowdown in mortgage activity – not unexpected …now this may be due to a couple of factors – certainly this time of year plays a role in that families are wrapping up their final summer vacations and are getting ready for school, so parents have put their financial duties on hold for a couple of weeks. Also, consumers who were thinking about refinancing and who missed the sub -five percent rates may be now sitting on the fence to see what the fall will hold for them regarding interest rates.
One side note is that we may see a flurry of activity this fall in the first time homebuyer arena – primarily due to the expiration of the $8,000 tax credit which occurs December 1, 2009.
The Federal Reserve wraps up its two day meeting this week – it’s likely that they will leave interest rates unchanged – but be careful to watch their verbiage as to their stance on inflation and future rate movement. Occasionally the markets will react more severely to what is said in the Fed Minutes versus the actions that are provided within the Fed’s interest rate moves.
Jeremy M. Salemson
Corporate Investors Mortgage Group, Inc.