Foreclosure Filings Increase for 8th Straight Month; Economists Foresee Double Dip
Today, RealtyTrac announced that lenders repossessed 93,000 homes in July — 9 percent more than in June, and up 6 percent since 2009. Again, California had the most filings, and Nevada had the highest foreclosure rate, for the 43rd straight month.
Still, while banks foreclosed on more homes, the total number of filings has continued to fall, a sign that the foreclosure crisis might have peaked. Last month, 325,000 homes received a notice of default, auction or repossession — up 4 percent from June and down 10 percent from 2009.
All in all, it has been a horrible day in economic news, and housing news especially. Another report from Moody’s Analytics says the chance of a double dip — a return to technical recession, with the economy contracting rather than growing — has risen from 20 percent to 25 percent. Moody’s says that another drop in home values might catalyze a broader downturn, as economic growth is already slowing. During a double dip, home prices might fall a further 20 percent. They are already about 30 percent off their peak — more than 50 percent in Nevada.