The mortgage delinquency rate fell to 4.5% in June, which is a decrease of 0.8 percentage points compared with June 2016, when it was 5.3%, according to CoreLogic’s Loan Performance Insights Report.
In addition, the foreclosure inventory rate stood at 0.7%, down 0.2 percentage points compared with June 2016, when it was 0.9%.
In the report, 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 to 59 days past due, was 2.0% in June, down slightly from 2.1% in June 2016.
The share of mortgages that were 60 to 89 days past due was 0.6%, also down slightly from 0.7% in June 2016.
The share of mortgages that transitioned from current to 30 days past due was 0.9%, 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%.
“The CoreLogic Home Price Index increased six percent and payroll employment grew by 2.2 million jobs in the year ending June 2017, supporting further declines in delinquency rates,” says Frank Nothaft, chief economist for CoreLogic, in a release. “The forecast for the coming year includes five percent home-price appreciation and further job growth, putting renewed downward pressure on mortgage delinquency rates.”
“After peaking at 3.6 percent in December 2010, June’s 0.7 percent foreclosure rate was the lowest in 10 years,” adds Frank Martell, president and CEO of CoreLogic. “Across the 100 most populous metro areas, the foreclosure rate varied from 0.1 percent in Denver-Aurora-Lakewood to 2.2 percent in New York-Newark-Jersey City.”