For countless families in America, mortgage issues did not follow the path of the nationwide housing crisis a decade ago; instead of improving over time, matters only got worse. Estimates in recent years show that this trend in mortgage crises has ultimately led to millions of home foreclosures. Mississippi is not exempt from this trend, but what could current statistics predict about the housing market in the coming months?
National Mortgage News noted last month that, even with rising foreclosure rates, there is usually an expected increase in foreclosures in August — the month where real estate also sees stagnancy. However, this past August’s foreclosure numbers revealed that rates are twice the average 6 percent seasonal increase in August over the last 10 years. These statistics are not unlike those of the subprime mortgage crisis of 2007 to 2009. Although experts do not see these rates as cause for alarm, they could mean trouble for local markets where foreclosure rates have been steadily increasing. Mississippi was one of five states that saw year-over-year increases in foreclosure filings, with foreclosure rates up 9 percent.
In 2015, USA Today named Mississippi as one of the 10 states where foreclosures are on the rise. The state still ranks as having some of the lowest foreclosure rates in the country, but, just as National Mortgage News showed, these numbers are nevertheless increasing. And according to USA Today, banks are quick to repossess homes, through what many are calling a “spring cleaning” process. The increase in repossessions resulted in more scheduled auctions, and many claim this spike shows that there is no shortage of prospective buyers seeking deals in foreclosed property. Mississippi residents may be floating on calm waters when it comes to foreclosures, but if the country’s overall foreclosure increases are any prediction of the housing market climate, those low numbers could change in the future.