CoreLogic expects further declines in the coming months
Mortgage foreclosure and delinquency rates decreased in August as home-price growth continued to build owners’ equity, according to the Loan Performance Insights Report for the month released by CoreLogic.
Nationally, 4% of mortgages were in some stage of delinquency, including those in foreclosure, in August. The rate represents a 0.6 percentage-point decline in the overall delinquency rate compared to the 4.6% rate in August 2017.
Meanwhile, the foreclosure inventory rate was 0.5%, down 0.1 percentage point from a year ago. The August foreclosure inventory rate tied with the April, May, June, and July rates this year as the lowest for any month since September 2006, when it was also 0.5%.
The early-stage delinquency rate was 1.8%, down from 2% in August last year. The share of mortgages that were 60 to 89 days past due in August was 0.6%, down from 0.7% in August 2017. The serious delinquency rate was 1.5%, down from 1.9% in August 2017. The serious delinquency rate was the lowest for August since 2006 when it was 1.4% and the lowest for any month since March 2007 when it was also 1.5%.
“With home-price growth building owners’ equity, and the low national unemployment rate providing opportunities for income growth, further declines in US delinquency and foreclosure rates are likely in coming months,” CoreLogic Chief Economist Frank Nothaft said. “The CoreLogic Home Price Index for the US recorded 5.7% annual growth in August. This price gain helped the average homeowner build about $16,000 in equity during the prior year and reduces the likelihood of a borrower transitioning from delinquency to foreclosure.”
