The analytics firm reported that foreclosure inventory dropped by 27.4% year-over-year in May, and completed foreclosures fell by 19.2%. That’s a 64.9% decrease from the peak of completed foreclosures in 2010.
“With 3 million jobs created during the past year, the improving labor market has helped more borrowers stay current on their mortgage loan,” said CoreLogic chief economist Frank Nothaft. “Because fewer loans are becoming seriously delinquent, the foreclosure inventory has come down to its lowest level in seven years, with only 1.3% of loans in foreclosure proceedings.”
In May, U.S. foreclosure inventory totaled about 491,000 homes – about 1.3% of all homes with a mortgage, according to CoreLogic. In May of 2014, the foreclosure inventory totaled about 676,000 homes.
Serious delinquencies – homes with mortgages 90 days or more past due – were also down, dropping 22.7% from May 2014, according to CoreLogic. That’s the lowest serious delinquency rate since January of 2008. However, delinquencies do remain an issue in some areas of the country, according to Anand Nallathambi, president and CEO of CoreLogic.
“While the nation’s seriously delinquent rate – 3.5% – is at its lowest level since January 2008, it remains very high in several big markets,” Nallathambi said. “The greater New York City region and central Florida continue to have some of the highest serious delinquency rates, almost doubling the national level. default remains elevated in the Chicago and Baltimore metro areas as well.”
Florida had the highest number of completed foreclosures for the 12 months ending in May with 104,000, followed by Michigan (46,000), Texas (33,000), California (28,000) and Ohio (27,000). Together, those five states accounted for nearly half the completed foreclosures in the U.S., CoreLogic reported.
Total U.S. foreclosure inventory has dropped to its lowest level since 2007, according to new data from CoreLogic.