—Foreclosure Inventory Rate and Serious Delinquency Rate Lowest in Nearly a Decade—
- Overall Mortgage Delinquency Rate Fell 0.8 Percentage Points Year Over Year
- Foreclosure Rate Declined 0.2 Percentage Points Year Over Year
- Early-Stage Delinquencies Edged Lower Year Over Year
IRVINE, Calif. — (BUSINESS WIRE) — September 12, 2017 — CoreLogic® (NYSE: CLGX), a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report which shows that, nationally, 4.5 percent of mortgages were in some stage of delinquency (30 days or more past due including those in foreclosure) in June 2017. This represents a 0.8 percentage point decline in the overall delinquency rate compared with June 2016 when it was 5.3 percent.
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CoreLogic National Overview of Loan Performance June 2017 (Graphic: Business Wire)
As of June 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.7 percent, down from 0.9 percent in June 2016 and the lowest since the rate was also 0.7 percent in July 2007.
Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.
The rate for early-stage delinquencies, defined as 30-59 days past due, was 2.0 percent in June 2017, down slightly from 2.1 percent in June 2016. The share of mortgages that were 60-89 days past due in June 2017 was 0.6 percent, also down slightly from 0.7 percent in June 2016.
“The CoreLogic Home Price Index increased 6 percent and payroll employment grew by 2.2 million jobs in the year ending June 2017, supporting further declines in delinquency rates,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The forecast for the coming year includes 5 percent home-price appreciation and further job growth, putting renewed downward pressure on mortgage delinquency rates.”
Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30-days past due was 0.9 percent in June 2017, unchanged from June 2016. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent and peaked in November 2008 at 2 percent.
“After peaking at 3.6 percent in December 2010, June’s 0.7 percent foreclosure rate was the lowest in 10 years,” said Frank Martell, president and CEO of CoreLogic. “Across the 100 most populous metro areas, the foreclosure rate varied from 0.1 percent in Denver-Aurora-Lakewood to 2.2 percent in New York-Newark-Jersey City.”
For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/blog.
The data in this report represents foreclosure and delinquency activity reported through June 2017.
The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not typically subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 85 percent coverage of U.S. foreclosure data.
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