The U.S. Department of Housing & Urban Development (HUD) and the U.S. Department of the Treasury have released the July edition of the Obama Administration's Housing Scorecard—a report on the nation’s housing market. Data in the Housing Scorecard show continued signs of recovery as foreclosure starts and completions declined in June, though officials expect activity to increase in the coming months as firms lift delays in foreclosure processing. In addition, the inventory of houses for sale remained low; at current pace, it would take 6.6 months to sell the supply of existing homes on the market and 4.9 months to clear the new homes on the market. Experts consider a six month supply of homes to be a balanced market. Distressed sales remain a key factor, however, as the impact of serious delinquencies and underwater mortgages continue to temper market gains.
“This month’s indicators show momentum not seen since before the housing crisis as refinances through our enhanced Home Affordable Refinance Program continue to surge—HARP loans represented 20 percent of total refinance volume in May, the largest increase since the program was launched in 2009," said HUD Acting Assistant Secretary Erika Poethig. "But with so many households still struggling to make ends meet, it’s clear that we have more work ahead. That is why we are asking the Congress to approve the President’s refinancing proposal so that more homeowners can receive assistance.”
The July Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:
►The Administration's foreclosure programs are providing relief for millions of homeowners as the housing market continues to recover from an unprecedented crisis. More than 1.2 million homeowner assistance actions have taken place through the Administration’s Making Home Affordable Program, while the Federal Housing Administration (FHA) has offered more than 1.4 million loss mitigation and early delinquency interventions. The Administration's programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than 2.9 million proprietary mortgage modifications through May.
►Homeowners in HAMP continue to demonstrate long-term success in the program. As of June, more than one million homeowners have received a permanent HAMP modification, saving approximately $537 on their mortgage payments each month, and an estimated $13.9 billion to date. In June, 75 percent of homeowners with non-GSE mortgages benefitted from principal reduction with their HAMP modification. Eighty-six percent of homeowners starting the program in the last two years have received a permanent modification. HAMP modifications continue to exhibit lower delinquency and re-default rates than private industry modifications, with 94 percent of homeowners still current on their modified payments after six months. View the Making Home Affordable Program Report with data through May 2012.
“The fragile signs of stability that the national data show for the broader housing market are even more delicate in the Miami market,” said Poethig. “The Administration is working hard to help all homeowners who have been hit hard during the crisis and, as this Regional Spotlight shows, our efforts have helped more than 147,000 Miami households to avoid foreclosure. A modest local economic recovery is underway, but we have much more to do to reach the many households who still face trouble and to help the Miami market recover.”
