New Foreclosure Numbers: Are We Going to See an Increase in Albuquerque in 2022?
(Transcript Snippet): “Tego:
Story this week there was some, some new numbers on the number of foreclosures and I saw a few headlines, typical, right? Typical, typical thing where they say, you know, foreclosure spike in the first part of 20, 22. And yeah, course they spiked cuz it went from zero. So anything above zero was a spike. And so we’re gonna see some more foreclosures however there’s still way, way below any historic norms whatsoever. And every indication is that, that we’re just not gonna see any big wave of delinquent properties in, in homes being foreclosed on and coming on the market, which, which you know, obviously we could use homes on the market, but then again, we don’t want people being foreclosed on either. So right.
Tracy:
And to piggyback on that, right? Yeah. If you know, somebody who’s behind in payments and they maybe are in a foreclosure direction have ’em call us because there are so many solutions right now and you don’t have to go through foreclosure. You can maybe save some of that credit. That’s being harmed because house prices have appreciated so much that a lot of people we can sell those houses for ’em and maybe put money in their pocket instead of them walking away with a foreclosure and nothing.
Tego:
Well, you think about in the last two years, maybe 30% price appreciation over two years in, in our market, you know, somewhere around there. I mean, you know, a lot of people probably have more equity than they think they do.
Tracy:
Exactly.
Tego:
Which well,
Tracy:
Go ahead. Which reminds me, if you just wanna know what prices are doing in your neighborhood, we’d be happy to get you a market data on your neighborhood and your house just as a courtesy.
Tego:
Sure. The, you know, the bottom line on the whole foreclosure thing is that we’re gonna see an increase in 20, 22, but you know, but it’s coming from record low levels. And so it’s really not gonna impact our, our housing market hardly at all,
Tracy:
Our, our re our listeners. Can’t see the chart that you put in front of us, if it’s sort of crazy how low they are, right. Yeah, yeah,
Tego:
Yeah. Especially when you look back at
Tracy:
2000 9, 10, 11. Yeah,
Tego:
Yeah, exactly. Another, another thing that, you know, I, I don’t know if I even want to go here, but we’re gonna go here anyway. And it was interesting. One of the economists that I follow on Twitter that does a lot of housing stuff, he, he, he put a put together a pretty you interesting analysis of, you know, is, is the war in Ukraine gonna affect the us housing market? I know there’s been a lot of people talking about, okay, is this, you know, how’s it gonna affect the economy? Is it gonna affect our economy? And so I, you know, the, the takeaway I, I did on this one, and I’ve read a couple other anonymous too, talking about it is that the short answer is really not, it’s not gonna really, it doesn’t appear to do anything because you know, yes inflation’s gonna increase because of fuel prices. I mean, I think that’s, that’s pretty clear. The, the the thing that’s interesting, no mortgage rates actually ticked down in the last week. Right?
Tracy:
However, the fed came out this week and said they are going to continue raising the rate. Right. The,
Tego:
Yeah. But, but the, the thing that’s interesting, Nate, they, so what happened was, you know, the fed came out and everybody was predicting a, a, a 50 basis point or half a half a, you know, a half a percent increase in the fed rate. Well, now it’s only gonna be a quarter point or 25 BS or whatever you wanna call it, right. 25 basis points. And, and, and then what happened was when the war started a lot more money came flowing into the bond market, which is the 10 year bond, right? The, the 10 year treasury. And when you know, when demand goes up, prices go down. The thing, so, you know, the treasure, the, the, the, the 10 year tee bill or the, in your treasury note, if you look at that, that’s really tells us where the mortgage market is gonna go. So long story short is mortgage rates actually tick down this last week. All indicators are that yes. As you know, the fed you know, does some more tightening that maybe mortgage rates are go up, but right now they’re, they’re holding, you know, somewhere in this sub four, just over 4% range
Tracy:
And that’s for somebody with a good credit score. Yeah,
Tego:
Yeah, yeah. And that, yeah, that varies obviously.
Tracy:
Yeah. And by loan program, you know, the thing that was in the, the local, the legislature passed, and the governor signed the bill for 20, like 25 million for affordable housing. Yeah. So that’s really nice because our down payment assistance program, the, the com the what’s, the entity that administers that MFA the MFA mortgage finance authority will be the ones that are in charge of that. And they do a great job with helping people get into homes, helping with down payments.
Tego:
The thing I like about that program is you know, the home buyer has to go through some education. They have to do some financial literacy work, which, which is great. And it’s, it’s a way for people to get into home ownership without actually just giving them a house. You know, it’s like they still have some skin in the game. They have to, you know, have the financial literacy, they still have to qualify. But they just get, get that little extra help with, with the down payment, which is, which is great. It’s a program,
Tracy:
Some, some of the programs that they have, there’s more than one available, depending, you know, first time buyer versus move a buy or whatever that, you know, with as little as $500 out of pocket for somebody they can get into a home.
Tego:
Yeah, yeah. No, it’s, it’s, it’s a good program, you know, and I, and that just brings up something just made me think about it is, you know, I was talk, I, I rented one of our, our homes and I was talking to a couple that they’re like, well, we’d like to buy, but, you know, we don’t have 20% down. And it just made me realize, again, it’s like, people don’t understand that they don’t, you know, you don’t need 20% down, obviously that’s ideal. You know, if you can, cuz then you don’t have to pay mortgage insurance. But, but for people that are just trying to get their foot in the door of, of home ownership, you know, the FHA program’s three and a half percent and a half percent down payment, the New Mexico mortgage finance authority program is, you know, 500 out of pocket, like you just said, so.
Tego:
Right. I think it’s just educating people that it’s out there now. Of course we have this other problem right now, which we have very few affordable properties, starter homes on the market right now. True. Yeah, yeah, yeah. It’s, it’s it’s, it’s interesting. And I don’t, I don’t I don’t know what the the solution is other than, you know people that are in homes right now that that want to get ’em sold, they can do it and they can do it quickly and they can get a, get a good price for ’em and you know, it, it does take quite a bit of navigating and it’s not as easy as just hammering a, a sign in the front yard. Is it?
Speaker 3:
No, it’s not.