After falling to the lowest level of the year in June, monthly foreclosure activity picked back up.
The number of properties nationwide that went into some stage of foreclosure rose 5 percent from June to 92,845, according to the announced results of RealtyTrac's latest U.S. Foreclosure Market Report. The total is also 18 percent above the level in July 2005.
July's national foreclosure rate was reportedly one new foreclosure filing for every 1,245 households, almost identical to the rate in May.
"While foreclosure activity continues to remain slightly below historical averages, there looks to be a significant amount of upward pressure on foreclosure rates in the next few months," noted RealtyTrac Chief Executive James J. Saccacio in the announcement. "First, the billions of dollars in ARMs projected to reset in the third and fourth quarters could increase monthly mortgage payments for many homeowners. And the cooling real estate market exacerbates the problem for these homeowners."
Continuing the trend from the previous four months, Colorado remained the state with highest foreclosure rate in July -- one new foreclosure filing for every 480 households. Nevada had the second-highest foreclosure rate for the second month in a row, with one new foreclosure filing for every 533 homes, and Texas, for the eighth month in a row had the most properties in foreclosure, but the third-highest rate at one filing for every 614.
Texas, Florida, California, Michigan, Ohio and Illinois -- accounted for more than half, or 54 percent, of the nation's foreclosure filings in July. Florida regained the second-highest number of properties entering a stage of foreclosure, as its number jumped 25 percent from June to 10,757 and bumped California down to the third-highest -- with 10,025 properties amounting to six fewer than the previous month but two times above the number reported in July 2005.
RealtyTrac, based in Irvine, Calif., says it publishes "the largest and most comprehensive national database of pre-foreclosure and foreclosure properties, with nearly 600,000 properties from more than 2,500 counties across the country."
Data provided by Default Research, which claims it a "rapidly growing real estate research company" and gives investors leads two to three weeks ahead of the competition, conflicted that of RealtyTrac's.
Default Research announced that Florida and California saw surprising decreases in July. Lee County led the way in Florida with a drop of approximately 40 percent, and in California, the most significant drop in foreclosures was in San Bernardino County, with a decline of 30 percent.
However, the Pennsylvania-based company coincided in that rising mortgage rates, the escalating cost of living and low appreciation rates, could send the foreclosure rate up.