The end of the foreclosure crisis is finally seen. The number of homeowners falling behind on their loans is decline for the first time in almost three years.

The plunge means the number of people losing their homes will start to descend. However, some pain from the crisis is sure to carry on. Because millions of people are already in foreclosure, deeply discounted houses will put pressure on home prices for years.

“Housing is on a path to recovery,” said Mike Larson, a real estate analyst with Weiss Research. “It’s going to be a very long, gradual process.”

In high-foreclosure cities like Las Vegas, Phoenix and Miami, homes have lost roughly half their…

Citigroup Inc. strategizes to let homeowners on the edge of foreclosure stay in their homes for six months — if they turn over the deed to their property.

Citigroup stated that it is launching the pilot program, dubbed “Foreclosure Alternatives,” this week in Texas, Florida, Illinois, Michigan, New Jersey and Ohio. Initially, about 1,000 homeowners are expected to participate. Citigroup may expand the program nationwide.

In a normal foreclosure, a lender supposes legal control of the property and evicts the homeowner. However, Citigroup’s program, like other “deed in lieu of foreclosure” efforts, permits the homeowner to avoid a completed foreclosure.

The policy is an effort to deal with what lenders see as a…

According to Freddie Mac, the rates on 30-year fixed mortgages slightly increased this week, inching above 5 percent.

The average rate on a 30-year fixed mortgage was 5.01 percent this week, which is up from 4.98 percent last week. Last year at this time, the average rate for a 30-year fixed mortgage was 5.25 percent.

Rates chopped down to a record low of 4.71 percent set in early December. They have been held around 5 percent by a Federal Reserve program to pump $1.25 trillion into mortgage-backed securities to try to keep rates low and make home buying more affordable. That program is set to end March 31.

The average rate on 15-year…