Foreclosure is Eminent in Most Parts Of The United States as The Residencial Market Continues to Decline

Mortgage Foreclosure is Eminent Is Most Areas Of The United States as The Residencial Market Continues to Decline by wsjnewspaper

Mortgage delinquency continues to climb, economists predict a wave of foreclosures as inflation looms the economy

Compared to the previous year, on average, this increased 13% in August and 15.6% in July, according to the S&P CoreLogic Case-Shiller index. Being the most significant slowdown in the history of the index.

The collapse of the housing market is evident that mortgage foreclosures are piling up. At the same time that the Federal Reserve is increasing interest rates in its attempt to stop the highest inflation in recent decades. But even with the slowdown, prices remain elevated compared to last year. With all this and mortgage rates approaching 7%, it is very difficult for people who want to buy, and even some sellers have withdrawn, reported Jay Travis from The WSJ Newspaper.

“The sharp slowdown in US house prices that we noted a month ago continued,” Craig Lazzara, managing director of S&P Dow Jones Indices, said in the statement. “Given the continued outlook for a challenging macroeconomic environment, home prices may continue to slow.”

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Average price growth in more than a dozen US cities gained 13.1% in August, down from a 16% increase in July.

The changes registered in recent months had calmed the rise of the pandemic when houses were selling relatively quickly. After eight months, sales of existing homes continue to fall; according to data from the National Association of Realtors, accompanied by this, the construction of new homes also suffered a drop in September, according to recent government data.

“As we move into the colder months of the year, we can expect further declines in home sales and a continued downward price adjustment,” said George Ratiu, manager of economic research for Realtor.com.

The sudden market downturn has hit homebuilders. PulteGroup Inc. reported Tuesday that cancelled deals soared, and third-quarter orders slumped as demand faltered.

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