The most recent housing scorecard from the U.S. Department of Housing and Urban Development and the U.S. Department of the Treasury collects key housing market data and tracks the impact of the administration’s foreclosure prevention programs. In July, the scorecard shows important progress in both the inventory of homes on the market and the number of underwater mortgages. The number of borrowers who are underwater on their mortgage fell 5.8 percent from the previous quarter and is 0.9 percent below one year ago. But, though foreclosure activity was down in July, the report says there is an expectation that it will increase in coming months as processing delays are lifted. Also, housing inventory remains low. Experts consider a six-month supply of homes to be a balanced market. At the current sales pace, July’s estimates show a 6.6-month supply of existing homes and a 4.9-month supply of new homes currently on the market. Erika Poethig, HUD’s acting assistant secretary, says there has also been important progress in refinance activity. According to Poethig, July’s indicators show momentum not seen since before the housing crisis as refinances through the HAMP program have continued to surge. More here and here.