Thirty day-plus delinquencies are down 0.8 percent year-over-year, according to the July CoreLogic Loan Performance Insight report. In June of 2016 the 30-plus delinquency rate was 5.3 percent—that figure dropped to 4.5 percent in June of 2017.
The foreclosure rate also dropped to a 10 year low, at 0.7 percent according to the report. “After peaking at 3.6 percent in December of 2010, June 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 percent in Denver-Aurora-Lakewood to 2.2 percent in New York-Newark-Jersey City.”
On a national scale, the percentage rate of delinquency dropped year-over-year in almost all stages. Loans that were 30-59 days past due dropped from 2.1 percent in 2016 to 2.0 percent in 2017. Similarly, loans that were 60-89 days past due dropped to 0.6 percent from 0.7 percent. Loans 120-plus days past due had the largest change, dropping to 1.6 percent from 2.2 percent a year prior. Loans that were 90-119 days past due remained unchanged at 0.3 percent.
By state, serious delinquencies were down in every state except Alaska and North Dakota, where they saw an increase and no change, respectively.
According to the report, drops in delinquencies across the board, as well as an increase in payroll jobs, bodes well for the U.S. housing market in the coming years. “The CoreLogic Home Price Index increased 6 percent 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 at CoreLogic. “The forecast for the coming year includes 5 percent home-price appreciation and further job growth, putting renewed downward pressure on mortgage delinquency rates.”