There were about 38,000 completed foreclosures in May – an increase of 5.5% compared with about 36,000 in April but a decrease of 6.9% compared with about 41,000 in May 2015, according to CoreLogic’s National Foreclosure Report.
What’s more, completed foreclosures were down 67.9% from the peak of 117,813 in September 2010.
States with the highest numbers of completed foreclosures included Florida (63,000), Michigan (45,000), Texas (27,000), Ohio (23,000) and California (23,000). These five states account for almost half of all completed foreclosures nationally.
States with the lowest numbers of completed foreclosures included the District of Columbia (139), North Dakota (323), West Virginia (494), Alaska (648) and Montana (690).
As of the end of May, there were about 390,000 residential properties in the national foreclosure inventory – homes that are in some stage of foreclosure – which is about 1.0% of all homes with a mortgage. That’s a decrease of 24.5% compared with about 517,000 properties, or 1.3% of all homes with a mortgage, in May 2015.
The May foreclosure inventory rate was the lowest for any month since October 2007, CoreLogic says.
States with the highest foreclosure inventory rates included New Jersey (3.6%), New York (3.2%), Hawaii (2.1%), the District of Columbia (2.0%) and Maine (1.9%).
States with the lowest foreclosure inventory rates were Alaska (0.3%), Arizona (0.3%), Colorado (0.3%), Minnesota (0.3%) and Utah (0.3%).
About 1.1 million mortgages, or 2.8% of all residential mortgages, were in serious delinquency (defined as 90 days or more past due, including loans in foreclosure or real estate owned) – a decrease of 21.6% compared with May 2015. It was the lowest serious delinquency rate since October 2007.
“The foreclosure rate fell to one percent in May, which is twice the long-term average of 0.5 percent. However, this masks the underlying progress at the state level,” says Frank Nothaft, chief economist for CoreLogic, in a release. “Twenty-nine states had foreclosure rates below the national average, and all but North Dakota experienced declines in their foreclosure rate compared to the prior year.”
“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,” adds Anand Nallathambi, president and CEO of CoreLogic. “We expect these factors to remain in place for the remainder of this year and for delinquency and foreclosure rates to decline even further. As we finally move past the housing crisis, we need to increase our focus on expanding the supply of affordable housing and access to credit for first-time home buyers in sustainable ways to ensure the long-term health of the U.S. housing market.”