Foreclosure inventory, serious delinquencies hit near-decade lows

by Ryan Smith13 Jul 2016
The total U.S. foreclosure inventory plummeted 24.5% year over year in May, bringing the foreclosure inventory rate to its lowest level in nearly a decade, according to new data from CoreLogic.

The analytics firm released its May 2016 National Foreclosure Report Tuesday. The report showed that the number of completed foreclosures nationwide falling from 41,000 in May of 2015 to 38,000 in Mat of 2016. That’s a 6.9% year-over-year drop, and a decrease of 67.9% from the September 2010 peak of 117,813.

The national foreclosure inventory – the number of homes at some stage of the foreclosure process – included about 390,000 homes, or about 1% of all homes with a mortgage, in May of 2016. Last May, that number was 517,000 homes, or about 1.3% of all homes with a mortgage. The May 2016 foreclosure rate was the lowest it’s been for any month since October of 2007, according to CoreLogic.
The number of mortgages in serious delinquency also continues to drop, declining 21.6% year over year in May. The May 2016 serious delinquency rate is also the lowest it’s been since October 2007.
“The foreclosure rate fell to 1% in May, which is twice the long-term average of 0.5%,” said Frank Nothaft, chief economist for CoreLogic. “However, this masks the underlying progress at the state level. twenty-nine states had foreclosure rates below the national average, and all but North Dakota experienced declines in their foreclosure rates compared to the prior year.”

“Delinquency and foreclosure rates continue to drop as we experience the benefits of a combination of tight underwriting, job and income growth and a steady rise in home prices,” said CoreLogic President and CEO Anand Nallathambi. “We expect these factors to remain in place for the remainder of this year and for delinquency and foreclosure rates to decline even further. As we finally move past the housing crisis, we need to increase our focus on expanding the supply of affordable housing and access to credit for first-time homebuyers in sustainable ways to ensure the long-term health of the US housing market.”
 

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