I keep seeing in the news that foreclosure’s are up XX% in the last year. What they never say is what the foreclosure rate actually is. I mean if it’s up to 4% from 3%, that’s a dramatic 33% increase, but it also means that there are still 96% of people still paying their mortgages.
I just want to know what the real number is.
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5 Responses to 'What is the current national foreclosure rate?'
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I believe the current foreclosure rate is somewhere around 1 new foreclosure for every 560 households.
That indicates a percentage foreclosure rate of about .2%, meaning 99.8% of households are not in foreclosure.
The article I read today said that 1 in 538 mortgages are in the foreclosure process…
So, 0.2% or so. This is an almost 100% increase from last year. Some regional markets are disasters with up to 5% of houses in foreclosure (Stockton, CA is one example).
The news makes it sound a lot more scary, no?
good luck!
Oh yes, I just heard on the noon news that the foreclosure rate is up 57% from this time last year. It is still less than 1% in most areas. The media has to put a gloom and doom spin on everything.
In addition to the other points above, which are correct, foreclosure continues to differ a lot by location. Quoting “national” foreclosure figures glosses over these differences. For example, California and Florida account for over 30% of new foreclosures recently.
Many other states have very few — in fact, my zip code has just 2 active foreclosures. So a national foreclosure rate is misleading if it lumps in California and Florida with states that have no real foreclosure problem. You may be interested in this map:
The etiology is also different between California, where we had a lot of evidence of bubble-like behavior in the housing market over the last few years, and the upper Midwest, where we have seen increasing foreclosure rates that *precede* the latest credit storm, which are due to widespread unemployment as the Rust Belt continues to rust.
“All real estate issues are local.” — including this one.
Also — and I think you may have assumed this already — subprime loans account for over 50% of the foreclosures even though they only represent 13% of all mortgages. (Prime ARMS are slightly overrepresented but not nearly as much.) But even when we drill down by loan type (prime vs subprime, ARM versus fixed), there is still a lot of difference among the various states.
Whatever they are, it can be blamed on not our economy, but the likes of all the Al Gores, the slum lord friends of Obama and Hillary’s friend the mega-mogul, Warren Buffet, who have raped and pillaged our lower classes with high risk loans that they knew they would be taking back with the quickness of light.