US Foreclosures Down; But May Not Signal A Trend

The number of US homes headed for foreclosure declined in the second quarter, representing the first downturn since the beginning of the housing downturn in 2006. The percentage of loans entering the foreclosure process declined in the quarter to 4.57% from 4.63% in the first quarter. However, short-term delinquencies rose, the Mortgage Bankers’ Association said in a report release on Thursday.

The percentage of loans that have entered the foreclosure process went down last quarter to 4.57% from 4.63 percent in the first quarter, the report said. “On the surface, there is good news on the foreclosure front, but not on short-term delinquencies," explained MBA Chief Economist Jay Brinkmann. "There's a little pause. It could be short-term factors instead of a trend."

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