IRVINE, Calif.–As of June 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.7%, down from 0.9% in June 2016 and the lowest since the rate was also 0.7% in July 2007, according to CoreLogic’s monthly Loan Performance Insights Report.
According to the CoreLogic report, 4.5% of mortgages were in some stage of delinquency (30 days or more past due including those in foreclosure) in June 2017, which represents a 0.8% age point decline in the overall delinquency rate compared with June 2016 when it was 5.3%.
“Measuring early stage delinquency rates is important for analyzing the health of the mortgage market,” the company said. “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% in June 2017, down slightly from 2.1% in June 2016, the company said. “The share of mortgages that were 60-89 days past due in June 2017 was 0.6%, also down slightly from 0.7% in June 2016.
“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 Dr. 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.”
Since early stage delinquencies can be volatile, CoreLogic said it also analyzes transition rates. The share of mortgages that transitioned from current to 30-days past due was 0.9% 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% and peaked in November 2008 at 2%.
“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.”