For six years the so-called “Sand States”-Arizona, California, Florida and Nevada-have absorbed the lion’s share of punishment from foreclosures. But as many of those markets stabilize, the foreclosure plague is moving north and east and a major cause is the congestion of the region’s foreclosure processing.

The Northeast region has the fewest markets of any region among CoreLogic’s top 50 but six of the bottom 20 least improved markets in terms of prices, sales and declining, according to CoreLogic’s MarketPulse newsletter. The common denominator among all six is that they are in judicial states that are prone to foreclosure congestion.

“While there are exceptions to the rule, there is a strong correlation between foreclosure pipeline congestion and market improvement,” wrote CoreLogic economist Sam Khater.

Albany, ranked 77^th in the nation overall by CoreLogic, is the most congested market in the nation with an average of 66 properties in the process of foreclosure for every single foreclosure that is on the market (REO). Every one of the 10 top most congested markets in the nation ranked in the bottom half of CoreLogic’s most improved ranking.

State foreclosure laws have a great deal to do with foreclosure congestion and improved market metrics. Nine of the 20 least improved markets all in judicial states while 8 of the 10 most improved markets are not. The two most improved markets in the country, Detroit and Denver, are among the least congested pipeline markets.

Stability is emerging in a broad-based manner, Khater suggests, but the Northeast is lagging other markets in recovery, in part due to congested foreclosure pipelines. CoreLogic analyses market health based on supply of serious delinquencies, pace of sales as well as percent change in prices.

30-year Fixed-rate Mortgage Matches All-time Record Low

MCLEAN, Va., Jan. 5, 2012 /PRNewswire/ — Freddie Mac (OTC: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates starting the year at or near their all-time lows. The 30-year fixed averaged 3.91 percent matching its all-time record low amid recent data showing signs of improvement in the housing market and manufacturing industry. This marks the fifth consecutive week the 30-year fixed has averaged below 4.00 percent.

News Facts

• 30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.8 point for the week ending January 5, 2012, down from last week when it averaged 3.95 percent. Last year at this time, the 30-year FRM averaged 4.77 percent.
• 15-year FRM this week averaged 3.23 percent with an average 0.8 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 4.13 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.86 percent this week, with an average 0.7 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.75 percent.
• 1-year Treasury-indexed ARM averaged 2.80 percent this week with an average 0.6 point, up from last week when it averaged 2.78 percent. At this time last year, the 1-year ARM averaged 3.24 percent.  

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.

Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

• “Fixed mortgage rates started the year a little lower this week just as recent data reports indicate the housing market and manufacturing industry are showing signs of improvement. Pending existing home sales in November jumped 7.3 percent, nearly five times greater than the market consensus forecast, to its strongest pace since April 2010. In addition, construction spending rose 1.2 percent in November, supported by the residential sector which exhibited its fourth consecutive monthly increase. Similarly, manufacturing expanded in December at the fastest pace in six months.”

Get the latest information from Freddie Mac’s Office of the Chief Economist on Twitter:@FreddieMac

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

SOURCE Freddie Mac

For further information: CONTACT: Chad Wandler, +1-703-903-2446, Chad_Wandler@FreddieMac.com