October was a good month for the housing market. While this blog has briefly touched on the successes that happened that month, recent research showed even further improvement for the struggling homeowner industry.
Numbers released on Monday by CoreLogic showed that the number of homes in foreclosure dropped in October from the previous month and was down 9 percent for the year. Lenders would be wise to prepare for hopeful homeowners seeing those numbers. Having quality loan servicing software in place will be a good idea, ensuring that an adequate mortgage can be created.
"A lower foreclosure inventory is a good indicator of improving housing markets," CoreLogic chief executive Anand Nallathambi told the new source. "The downward trend in foreclosure inventories over the past year is yet another signal that a recovery in housing is gaining traction."
Furthermore, about 1.3 million homes, or 3.2 percent of all U.S. homes, were in any stage of the foreclosure process in October, down from 1.4 million homes in September.
Construction loan software beneficial in recovery period
The amount of individuals looking to build their own homes is also on the rise. Specifically, construction spending increased 1.4 percent in October from the previous month and rose to its highest annual rate in more than three years, according to the Commerce Department.
Builders spent more money overall, with October's numbers surging by 9.6 percent. The seasonally adjusted rate shot up to $872.1 billion in October, up from a revised $860.4 billion in September.
Lenders need to ensure that they can handle a multitude of requests from hopeful borrowers. For those who are looking to break ground on their own, construction loan software will ensure that a repayment plan is created that will not be a hindrance to either party.