Foreclosures Fall in the second quarter by Magdalena Rosova

Latest figures showed that every tenth American household with a mortgage was at a risk of foreclosure this summer. Evidently, government's efforts to help people with high mortgages have not had a big impact on the housing crisis. Mortgage Bankers Association said Thursday that approximately 9.9 percent of homeowners had not paid at least one mortgage payment in June. This number is a bit lower that a record-high more than 10 percent in April 30. For the first time in four years the number of homes in the foreclosure process fell slightly. Since December 2007 when the recession began more than 2.3 million homes have been repossessed by lenders. It is expected that the numb! er of foreclosed homes will grow next year. The growing unemployment caused that number of Americans not paying their payments and falling into foreclosure has risen. There is no sign that the unemployment rat will drop soon. An economist Jay Brinkmann says that housing was always in direct connection with employment. Therefore only if employment increase there can be improvement in the housing. Fortunately, there are some encouraging news as well. For example, 4.57 percent less people with mortgage received foreclosure notice in the second quarter. That is a bit less than 4.63 percent in the first quarter and it is also the first drop in four years. The rate of loans receiving their first notice of foreclosures also fell slightly. In the first quarter it was 1.2 percent and in the following one it was 1.1 percent. Foreclosures has also influenced the values of homes, which keep falling. The housing industry is crippled, homebuilders have difficult task to compete with the ! depressed prices.

related story (sgx18081): http://seattletimes.nwsource.com/html/businesstechnology/201...

by Magdalena Rosova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

Home sales at lowest level since 1963! by Barbora Misakova

Is this divine punishment? It was housing market which was at the epicenter of the financial crisis that dragged the country and the rest of the world into recession. Today it is the same housing market which is not able to bring itself to its feet again. Worrying data from previous few days have been confirmed. What is more, new homes sales figures are even worse. It shows the housing sector in July slumped to its lowest level since 1963, what fuels concerns the world’s largest economy could slip back into recession. According to the Commerce Department, sales of new single-family houses slumped 12.4 percent in July. July sales broke below the 300,000 mark for the fi! rst time in 47 years. In spite of attractive prices and record low borrowing costs, housing market cannot do anything to make its position stronger. As France 24 pointed out “the number of unsold new homes are at the lowest since September 1968.” Even though orders for big-ticket items in the United States rose in July, as the Commerce Department showed, they were much lower than expected. There are many other indications of a faltering economy, what can heighten the potential for housing market to drag the economy back into recession. But not everyone sees it so negatively. As analyst Andrew Busch of BMO Capital Markets said: “there are still some low hanging fruit to be picked by policy makers to aid the economy and business.” Such a “low hanging fruit” could be according him the government cut of foreign tax earnings for US companies in a bid to boost growth.

related story (sgx18075): http://www.france24.com/en/20100825-new-home-sales-plunges-l...

by Barbora Misakova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.