It’s been over eight years since serious mortgage delinquency was this low. The foreclosure rate dipped despite a rise in repossessions.
Mortgages that were 90 days or more past due represented 2.8 percent of all residential loans outstanding as of May of this year.
The rate of serious mortgage delinquency
during the most-recent month wound up being the lowest 90-day rate since October 2007.
Those details and more were spelled out in the National Foreclosure Report May 2016 from CoreLogic Inc.
Ninety-day delinquency was previously reported at 3.0 percent as of April 30, 2016, and 3.5 percent as of May 31, 2015.
The 90-day rate was 6.7 percent in New Jersey — higher than in any other state. New York followed with a 5.7 percent rate. After that was 4.4 percent in Florida, 4.3 percent in Mississippi and 4.2 percent in Maine.
North Dakota’s 1.0 percent serious delinquency rate was the lowest of any state.
As of May 31, 2016, there were roughly 390,000 loans in some stage of foreclosure, fewer than the downwardly revised 402,000 in process as of the previous month.
The foreclosure inventory has plunged from the upwardly revised 517,000 a year earlier — bringing to 55 the number of consecutive months there has been a year-over-year decline.
Foreclosures in process accounted for 1.0 percent of all U.S. home loans as of May 2016, improving from 1.1 percent a month earlier. The rate was 1.3 percent in May 2015.
The latest foreclosure rate “is back to October 2007 levels,” CoreLogic said.
In New Jersey, the foreclosure rate was 3.6 percent — the worst in the nation.
Next was New York’s 3.2 percent, then Hawaii’s 2.1 percent, the District of Columbia’s 2.0 percent and Maine’s 1.9 percent.
Five states — Minnesota, Alaska, Colorado, Utah and Arizona — shared the lowest foreclosure rate: 0.3 percent.
Residential loan servicers and their service providers completed 38,000 foreclosures during the latest month, 2,000 more real-estate-owned filings than the downwardly revised figure in April.
But repossessions slowed from 41,000 in May 2015.
CoreLogic continued to stress that the current pace of REO filings remains well above the 21,000 monthly average between 2000 and 2006.
During the first-five months of 2016, completed foreclosures amounted to
174,000.
“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,” CoreLogic President and Chief Executive Officer Anand Nallathambi said in the report. “We expect these factors to remain in place for the remainder of this year and for delinquency and foreclosure rates to decline even further.”
