Education & Events

A Closer Look at Foreclosures

By Amanda Parsons - ALM Specialist

According to RealtyTrac, one in every 136 U.S. households received a foreclosure filing in the quarter ending September 30.  Foreclosures jumped nearly 23% from last year to 937,840 properties.  However, most of our members’ states are nowhere near the national rate of one in 136 households.

Delaware — one in 500
District of Columbia — one in 240
Maryland — one in 157
New York — one in 521
Pennsylvania — one in 387
Virginia — one in 196

Although this is positive for us, we’re not necessarily out of the woods yet.  Foreclosure rates are still rising
across the U.S., including in the Mid-Atlantic area.  Prudence and caution in lending standards are still warranted.

The Producer Price Index (PPI), prices paid to manufacturers and other producers in the U.S., unexpectedly
fell 0.6% from August to September due primarily to lower fuel costs.  Year-over-year, PPI is down to -4.8%. 
Last week, Federal Reserve Vice Chairman Donald Kohn reiterated the Fed line that low interest rates will
continue for an “extended period” because of low inflation and growth.  The latest PPI numbers support this
theory—inflation remains low and the Fed can continue to keep rates low to support the economic recovery.