Economic Trends Effect-Loan Modification San Diego Homeowners
According to the PMI Mortgage Insurance group- “Economic Trends in
The Nation’s MSAs
PMI’s proprietary U.S. Market Risk Index measures the
Likelihood of lower home price in two years for each of
The nation’s 381 metropolitan statistical areas and divisions
(MSAs). The Risk Index uses economic, housing, and
Mortgage market factors (including home price appreciation,
employment, affordability, excess housing supply,
interest rates, and foreclosure activity) to determine
these probabilities.
According to PMI’s Risk Index, risk in most of the nation’s
MSAs continued to increase as the nation’s recession
deepened during the third quarter of 2008. Increasing
rates of unemployment and foreclosure placed further downward
pressure on current rates of house price appreciation and
upward pressure on housing supply that jointly resulted in
increasing risk of price declines in the next two years. MSAs in
Florida, California, Arizona, and Nevada continue to lead the
nation in risk.”
This means we should expect more foreclosures and the increased need for a loan modification San Diego, Los Angeles, San Bernardino and Long Beach Counties with the increased onset of unemployment.
The MSAs metropolitan statistical areas located in
California, Nevada, Florida, and Arizona consistently rank as
the highest risk areas. The demand for will accelerate in the loan modification San Diego, San Bernardino, Riverside, Los Angeles, Long Beach, South Bay areas.
PMI went on to indicate what the following statistics were that were driving their analysis and predictions:
“The delinquency rate for mortgage loans on one-to-four-unit residential properties
stood at 6.99 percent of all loans outstanding at the end of the
third quarter of 2008, up by 58 basis points from the second
quarter of 2008, and up by 140 basis points from a year ago on
a seasonally adjusted basis. Nine states had rates of foreclosure
starts that were above the national average: Nevada, Florida,
Arizona, California, Michigan, Rhode Island, Illinois, Indiana,
and Ohio.” The report went on to describe problem areas throughout the Midwest and eastern area states that are at or below the national average.
The increase in foreclosures and the need for a loan modificationSan Diego area will become a necessity for home owners that are in need of modifying their home loan terms to avoid the foreclosure process.
PMI’s Chief Economist David Berson expects home prices nationwide to continue falling into at least 2009. This mainly is due to the supply and demand of homes on the market.
