Markets & Economy

Market update June 11, 2015: Mortgage applications, ‘zombie’ foreclosures and more

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The Mortgage Bankers Association’s Builder Application Survey for May 2015 showed:

  • Mortgage applications for new home purchases decreased 9 percent month over month in May 2015 from April 2015.
  • Conventional loans comprised 67.4 percent of loan applications.
  • FHA loans comprised 19.1 percent of loan applications.
  • RHS/USDA loans comprised 1.2 percent of loan applications.
  • VA loans comprised 12.3 percent of loan applications.
  • The average loan size of new homes increased from $315,670 in April 2015 to $320,744 in May 2015.

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RealtyTrac’s “zombie” foreclosure report showed:

  • The number of owner-vacated “zombie” foreclosures at the end of the second quarter stood at 127,021, representing a 10 percent decline in volume compared to the second quarter of 2014.
  • Zombie foreclosures account for roughly 1 in 5 properties in foreclosure nationally.
  • The estimated market value of an owner-vacated foreclosure is nearly $196,000, 22 percent below the average estimated market value of an owner-occupied foreclosure.
  • During the second quarter, the number of zombies decreased by 28 percent in Chicago and 46 percent in Miami — the largest decrease of any metro.
  • Of the nation’s top 20 cities, 10 saw a decline in zombie volume in comparison to the second quarter of 2014. Dallas (27 percent decline), Atlanta (33 percent decline) and Phoenix (14 percent decline) represent some of these cities.
  • On the flip side, 10 major metros saw a rise in zombie volume — led by San Diego/Carlsbad, a 292 percent increase, and Southern California’s Inland Empire, a 165 percent spike.
  • Out of the 183 metro areas RealtyTrac covers, 91 reported an increase in zombie volume.
  • The highest zombie rates among these 183 areas were found in Atlantic City, New Jersey (1 in 130 housing units); Trenton, New Jersey (1 in 166 housing units); Tampa, Florida (1 in 218 housing units); Binghamton, New York (1 in every 260 housing units); and Ocala, Florida (1 in every 262 housing units).

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Bankrate’s updated mortgage rates:

  • 30-year fixed-rate mortgage: 4.15 percent
  • 15-year fixed-rate mortgage: 3.39 percent
  • 5/1 adjustable-rate mortgage: 3.24 percent
  • 30-year jumbo mortgage: 4.17 percent

Email market updates to press@inman.com.

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