CoreLogic released its latest Loan Performance Insights report on national foreclosure and delinquency activity earlier this month. According to the report, the share of mortgages that transitioned from current to 30-days past due was 0.9% in July 2017, down from 1.1% in July 2016. CoreLogic compares this to January of 2007 when “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%.”
In addition, it is noted that 4.6% of mortgages were in some stage of delinquency in July 2017 – a 0.9 percentage point year-over-year decline in the overall delinquency rate compared to last year.
Meanwhile, the foreclosure inventory rate measuring the share of mortgages in some stage of the foreclosure process “was 0.7% and the lowest since the rate was also 0.7% in July 2007.” Likewise, the data discovered the serious delinquency rate remained near the 10-year low of 1.7% reached in July 2007.
According to Dr. Frank Nothaft, Chief Economist for CoreLogic, while the U.S. foreclosure rate remains at a 10-year low, the rate across the 100 largest metro areas varies from 0.1% in Denver to 2.2 % in New York. “The national serious delinquency rate remains at 1.9%, unchanged from June, and when analyzed across the 100 largest metros, rates vary from 0.6% in Denver to 4.1% in New York,” Nothaft said.
Additionally, CEO of CoreLogic Frank Martell said that even though delinquency rates are lower in most markets compared with a year ago, there are some worrying trends. Martell explained that “markets affected by the decline in oil production or anemic job creation have seen an increase in defaults. We see this in markets such as Anchorage, Baton Rouge and Lafayette, Louisiana where the serious delinquency rate rose over the last year.”