The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury have released the October edition of the Obama administration's housing scorecard, which shows continued signs of stabilization in house prices and high home affordability, but points to a fragile recovery in the housing market.
According to HUD and the Treasury, new and existing home sales remained below levels seen in the first half of this year. However, home prices have remained flat in the past year after 33 straight months of decline. Moreover, homeowners added $95 billion in home equity in the second quarter.
Also, more than 3.52 million modification arrangements were started between April 2009 and the end of August 2010, which is nearly three times the number of foreclosures completed during the same period. These included more than 1.3 million trial Home Affordable Modification Program (HAMP) modification starts and more than 510,000 Federal Housing Administration loss mitigation and early delinquency interventions.
HUD and the Treasury note that at nine months, almost 90% of homeowners remain in their permanent HAMP modification, with 11% in default. At nine months, less than 16% of permanent modifications are 60+ days delinquent.