Interesting Article on Foreclosures
I have noticed an increase in foreclosures in the local paper lately and was wondering what was going on. According to an article in USA Today, foreclosures in North Carolina jumped 60% from April to May. Nationally, during the same time foreclosures were up 11%. According to the article banks were pulling the trigger quicker on the foreclosure process due to, get this, their perception of a shortage of homes on the market and a rise in home prices. I believe this is true in the larger metropolitan areas but not in the smaller cities.
In May, foreclosure starts were up 4% from April but down 33% from a year earlier. Nationwide, home prices were up 12% in April, year over year. This data comes from RealtyTrac, a source that I believe is usually accurate.
On the local level, home prices seem to be firming up, but not rising. Interest rates are moving up on both 30 year and 15 year mortgages. A 30 year mortgage on a $300,000 loan that you could have got a few weeks ago would cost you $1347 a month. At today's rates the same loan amount would run around $1450, a hundred dollar a month increase.
The moral of this story is to buy now to take advantage of the still historically low rates. You can search the entire New Bern MLS at www.TysonGroup.Info