Foreclosures Continue Falling

Foreclosure rates continued their steady, three-year decline in June, according to a report Thursday from CoreLogic.

National foreclosure inventory fell 35% in June, to 648,000 homes, compared to a year earlier. The drop marks the 32nd straight month of year-over-year declines and the 17th straight month of declines greater than 20%.

Arizona, Utah, Minnesota, Georgia and Nevada saw the steepest drops, each falling by more than 45% from last year.

Home prices increased by 7.5%, marking the 28th consecutive month of year-over-year increases. Prices still remain 12.6% below their peak, however, in April 2006.

Housing-related expenditures accounted for 17.5% of gross domestic product, compared to 17.7% a year ago. Spending on construction peaked in the third quarter of 2005, accounting for 20.6% of GDP.