Mortgage Trends and Foreclosure Rates

This living topic delves into the complex landscape of mortgage rates, foreclosure activities, and related economic factors. It covers recent trends in foreclosure filings, the impact of state laws, and the efficacy of government home modification programs. The content also explores how mortgage lenders' practices and economic signals from the Federal Reserve influence both mortgage rates and foreclosure rates. Additionally, it addresses the challenges homeowners face with loan modifications and the broader implications of housing affordability and economic stability. The articles provide a comprehensive view of how fluctuating mortgage rates and economic conditions affect homeowners, lenders, and the housing market at large.

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Blacks 1.7 times more likely to be denied a mortgage, new study finds

Denial rates vary widely, with two Michigan metros having the highest denial rates

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After decades of attempts to level the housing playing field, Black Americans still face a harder path to home ownership than whites, with Black applicants being 1.7 times more likely to be turned down.

Detroit and Grand Rapids, Mich., had the highest denial rates in the nationwide survey conducted for LendingTree.

High mortgage denial rates — along with limited generational wealth, income disparities and discriminatory practices — are among the persistent challenges that ...

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Child care and mortgage costs now take most of a family’s paycheck

You may know that rising interest rates have made new mortgages much more expensive and inflation has pushed up the cost of child care. But what happens when you have both expenses in your budget?

A new study from real estate marketplace Zillow found that those two expenses might take most of your paycheck. 

Researchers found that in some of the nation’s largest metros, new homeowners would have to spend nearly every dime toward the combination of house payments and child care. In 31 of the largest 50 metros that were included in Zillow’s analysis, families in the market for a house can expect to spend more than 60% of their income on a new mortgage and child care. 

Here’s how the numbers break down: the typical family should be ready to pay $1,984 per month on child care and $1,973 on a monthly mortgage payment. The mortgage payment is based on the assumption of a 10% down payment, an interest rate of 6.61% and the median home price in each market.

With the monthly median household income now at $6,640, that leaves $2,683 for other necessary expenses. You know, things like food, health care, transportation, insurance, taxes and other fixed expenses.

Housing costs should be limited to 30% of income

Obviously, that’s a lot more spending on just two items than is financially healthy, but often it can’t be helped. Zillow says for a mortgage to be affordable it should not cost more than 30% of a family’s monthly income.

However, the typical household spends well over these guidelines in every market Zillow analyzed. When you get into the nation’s most expensive housing markets, the imbalance is even more pronounced.

In Los Angeles, prospective buyers would need to spend 121% of their income on a new mortgage and child care. In San Diego, families would need to spend 113%, and in Seattle, the share is 92%.

You may know that rising interest rates have made new mortgages much more expensive and inflation has pushed up the cost of child care. But what happens wh...