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RealtyTrac: Foreclosure activity experiences year-over-year decline

Posted on Friday, August 15, 2014 at 8:00:10 AM

This recent recession has been characterized by a high number of foreclosures, as many homeowners struggled to make monthly residential financing payments. However, that trend has shifted, and conditions continue to improve across the country.

According to RealtyTrac, foreclosure activity decreased 16 percent in July compared to the same time in 2013, keeping a trend of declines alive that has almost reached four straight years. However, July's level is slightly higher - 2 percent - than this June.

"July was the 46th consecutive month where U.S. foreclosure activity was down on a year-over-year basis," said Daren Blomquist, vice president at RealtyTrac. "After nearly four years of falling foreclosures, we are starting to see evidence that foreclosure numbers are normalizing at the national level."

From July 2012 to July 2013, foreclosure activity ticked down 32 percent, so this recent 16 percent drop is more average, and less of an outlier, than the past few years.

There is more good news for the housing market, as well. According to the Mortgage Bankers Association, interest in new homes is on the way up. Applications for new home purchases climbed 2 percent from June to July. For residential financing, most people wanted conventional loans, while FHA loans made up a smaller portion and VA loans slightly behind that.