Mortgage Biz News

That ominous shadow inventory of distressed homes that's been hanging over the industry was cut back in July, according to Barclays Capital.

It marked the fifth straight month that the company has recorded a decline in the shadow supply. Barclays says it shrank 1.2 percent, to 3.92 million homes. At the same time, the firm's assessment of the nation's REO inventory ticked up 0.2 percent to 538,000 properties. The distressed share of home sales rose sharply in July, and Barclays says this will likely drive prices down 2 percent over the next three months.