Expected home-price appreciation and job growth in 2018 put renewed pressure on mortgage delinquencies
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The overall delinquency rate declined 0.8% in June from a year ago, supported by improvements in home prices and employment, according to new data from CoreLogic.
During the month, 4.5% of mortgages across the US were in some stage of delinquency, meaning they were 30 days or more past due or were in foreclosure. This compares to a 5.3% overall delinquency rate for June 2016.
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The foreclosure inventory rate, which represents mortgages that are in some stage of foreclosure, was 0.7% as of June. This is a decrease from the 0.9% share in the year-ago period. The June rate also represents a return to the 0.7% rate recorded in July 2007.
Early-stage delinquencies, or those 30 to 59 days past due, were at a rate of 2% during the month, slipping from the 2.1% rate in the year-ago period. Mortgages that were 60 to 89 days past due comprised 0.6%, also down from the 0.7% last year.
“The CoreLogic Home Price Index increased 6% and payroll employment grew by 2.2 million jobs in the year ending June 2017, supporting further declines in delinquency rates,” said Frank Nothaft, chief economist for CoreLogic. “The forecast for the coming year includes 5% home-price appreciation and further job growth, putting renewed downward pressure on mortgage delinquency rates.”
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“After peaking at 3.6% in December 2010, June’s 0.7% 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 % in Denver-Aurora-Lakewood to 2.2% in New York-Newark-Jersey City.”
In June, 0.9% of mortgages transitioned from current to 30-days past due. The rate remained unchanged from June last year.
