May brought even more bad economic news — if you can believe that’s possible — as foreclosures on homes spiked once again, leaving Americans to wrestle with the current crisis our nation is facing when it comes to the ever-rising cost-of-living. The policies of our geriatric commander-in-chief are causing the middle class to be erased from existence, while expanding poverty at a rather alarming rate. And yet, for some reason, there are still people that have enough brain function to continue automatically breathing, who are considering casting a ballot for Joe Biden in November. It’s unbelievable.
A piece that was published by Fox Business revealed:
That is according to a new report published by real estate data provider ATTOM, which found that there were 32,621 properties in May with foreclosure filings, which includes default notices, scheduled auctions and bank repossessions. That marks a 3% increase from the prior year, although it is down 7% from the same time last year.
“May’s foreclosure activity highlights nuanced shifts in the housing market,” ATTOM CEO Rob Barber went on to say about the current condition of housing in the U.S. “While we observed a slight increase in foreclosure starts, the decline in completed foreclosures indicates resilience in certain areas.”
Nationwide, about one in every 4,320 housing units had a foreclosure filing in May, according to the report. But the problem was worse in several states. New Jersey experienced the highest rate of foreclosures last month, with about one in every 1,939 homes receiving a foreclosure notice — more than double the national average.
The state of Delaware, where our current president hails from and seemingly spends the vast majority of his time lounging around instead of leading the nation, has registered foreclosure filings for every 2,595 homes. Connecticut is seeing one for every 2,600 homes, and then there’s Florida with one for every 2,638.
Sucks, right? Well, I hope you’re wearing a cup, because you’re about to take another boot to the nithers, as the high price of homes, coupled with steep mortgage rates, property taxes, and the increasing cost of insurance premiums continue forward.
Housing affordability is the worst it has been in decades, thanks to a spike in home prices and mortgage rates. Combined, the two have helped to push the typical salary required nationwide for homeownership up to $106,500 — a stunning 61% increase from the $59,000 required just four years ago, according to Zillow.
There are several reasons to blame for the affordability crisis. Years of underbuilding fueled a shortage of homes in the country, a problem that was later exacerbated by the rapid rise in mortgage rates and expensive construction materials.
Available home supply remains down 34.3% from the typical amount before the COVID-19 pandemic began in early 2020, according to a separate report published by Realtor.com.
“Higher mortgage rates over the past three years have also created a “golden handcuff” effect in the housing market. Sellers who locked in a record-low mortgage rate of 3% or less during the pandemic began have been reluctant to sell, limiting supply further and leaving few options for eager would-be buyers,” Fox Business reported.
Economists, the modern-day prophets of doom, are predicting hellfire and brimstone to come raining down from the sky as they believe the mortgage rates will stay elevated throughout 2024, noting they won’t begin to tumble until the Federal Reserve starts slashing rates. However, even if they get knife happier than a plastic surgeon doing a Brazilian Butt Lift on Kim Kardashian, the rates aren’t going to go back to the lows we witnessed during the pandemic.
More doom to come, don’t worry. Wouldn’t want you all to think I’m suddenly developing an optimistic streak.
Investors are starting to get skeptical about the potential of a Fed rate hike sometime this year, given the fact there has been a line of hotter-than-expected inflation reports that came out when 2024 kicked off in January.
Mortgage buyer Freddie Mac said Thursday that the average rate on a 30-year loan fell to 6.95%. While that is down from a peak of 7.79% in the fall of 2023, it remains sharply higher than the pandemic-era lows of just 3%.
“Most homeowners say they are nearly twice as willing to sell their home if their mortgage rate is 5% or higher, according to a separate Zillow survey. Currently, about 80% of mortgage holders have a rate below 5%,” the report concluded.
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