CoreLogic April Edition of MarketPulse Report Examines Single-Family Housing Starts and Fallout from the Expiration of the Mortgage Forgiveness Debt Relief Act

CoreLogic April Edition of MarketPulse Report Examines Single-Family Housing Starts and Fallout from the Expiration of the Mortgage Forgiveness Debt Relief Act

 CoreLogic® (NYSE: CLGX), an Irvine, CA-based global property information, analytics and data-enabled services provider, on Tuesday, April 15, 2014 released its April MarketPulse report. In this report, CoreLogic economists, led by Chief Economist Dr. Mark Fleming, analyze the rise in U.S. construction employment, consider the possibility of a housing short-sale cliff, and debate whether rising rates and regained equity will incent home equity loan demand.

Key findings in the CoreLogic April MarketPulse report include:

  • As borrowers regain their equity and interest rates continue to increase over the next few years, the incentive to stay in one's existing home and finance home improvements though home equity lines of credit will likely increase relative to purchasing a new home or refinancing with cash out. This is good news for the home improvement industry and mortgage lenders who focus on home equity lending, as both will benefit from the resurgent consumer demand.
  • Although home price appreciation and other factors have contributed to the decline in short sales, the expiration of the Mortgage Forgiveness Debt Relief Act could be having an impact. Since the act expired on Dec. 31, 2013, CoreLogic data shows that borrowers are likely thinking twice about pursuing a short sale without the tax exemption.
  • According to a Bureau of Labor Statistics (BLS) report released in early March, nationwide construction employment increased 2.6 percent year over year in February and has been increasing on a year-over-year basis since June 2011. Although these year-over-year increases look tepid, they are strong when compared to the period of double-digit decreases in construction employment from January 2009 to March 2010.

MarketPulse article content consists of a selection of recently published CoreLogic research, analytics and commentary. To view additional content, please visit the Insights Blog: http://www.corelogic.com/blog.

For a full copy of the CoreLogic April MarketPulse report, including a complete set of data and charts, visithttp://www.corelogic.com/research/the-market-pulse/marketpulse_2014-april.pdf.

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