The mortgage trend of last week (13 – 20.04.2009)

The number of repossessed properties in Singapore and in the USA rose. In the UK there was an increase in approved mortgages. In Kazakhstan and Russia authorities promise to help the mortgage owners.

The number of repossessed properties in Singapore have risen 18% quarter-on-quarter. The majority of repossessed properties (77%) are in the residential sector. Most of them were at the lower end of the market. Colliers International analysts say that “the highest echelon of the society has yet to succumb to the badly-embattled financial market”. It’s a positive sign for the market.

Colliers International expects to see a more significant number of repossessed properties in the later part of this year or in 2010.

The number of American households threatened with loosing their homes grew 24 percent in the first three months of 2009 year-on-year. Nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same time period a year earlier, according to RealtyTrac Inc., a foreclosure listing firm. In March, more than 340,000 properties were affected nationwide, up 17 percent from February and 46 percent from a year earlier. Nearly 191,000 properties completed the foreclosure process and were repossessed by banks in the quarter.

Experts think the rise in foreclosures is caused by the fact major lenders restarted foreclosures after a temporary break, offered by Barack Obama.

Figures from the Council of Mortgage Lenders (CML) in Great Britain showed a 4 per cent rise in the number of mortgages approved between January and February. However, the number of approvals, at 24,300, was 47 per cent lower than the same period last year and about a third lower than the February average. The total value of mortgages in February was £3.1 billion, down 55 per cent on the same time last year but unchanged since January.

Kazakh Prime Minister Karim Masimov softened the conditions of mortgage loans refinancing. Now, the mortgage holder who wishes to refinance credit doesn’t need to provide data on housing that belongs to members of his or her family.

Russian President Dmitry Medvedev said the government plans to lower mortgage rates to 11-12 per cent “in the nearest future”. As the President said, nowadays home loans are being offered at 20 per cent rates, but “no one in his or her mind won’t take this credit”.

Author: Alexey Lahov