Mortgage monitor shows foreclosure starts down 30 percent

The November Mortgage Monitor from Lender Processing Services found mortgage delinquencies at the end of November were nearly 25 percent less than the January 2010 peak, but new problem loans have not improved in the last year.

In addition, the monitor showed new and repeat foreclosure starts declined 30 percent in November from October. The monitor attributes this drop to the impact of document reviews, new state regulatory legislation and new requirements that are changing lending behaviors.

However, mortgage rates are expected to remain low throughout 2012, making homeownership more affordable than ever. In an interview with MarketWatch, Greg McBride, senior financial analyst at Bankrate, said the 30-year fixed mortgage rate could remain below 5 percent for the next 12 months.

One factor keeping mortgage rates low is the ongoing debt crisis in Europe. Investors are putting their money in U.S. bonds and Treasuries as concerns build about the unstable financial situation in Europe, the source states. As these bonds grow, mortgage rates remain pushed down.

In addition, the Federal Reserve's short-term rate policy is also reducing mortgage rates. Thus, consumers should take advantage of the rates and either looking to a home loan or refinance their existing loan, the source reported.

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