New Foreclosure Milestone in Today’s Market
The nation’s foreclosure inventory is falling fast, and it’s presently the lowest it has been in 2007 according to CoreLogic. With nationwide foreclosures decreasing over the past 12 months from 42,000 in March 2015 to 36,000 in March 2016, that’s a full 67 percent decrease from the peak of the foreclosure inventory in September 2010. “Job and earnings growth have helped bring serious delinquency rates down in nearly every state,” observed CoreLogic chief economist Frank Nothaft. He added that nationally the economy added about 609,000 jobs in the first three months of 2016 alone and that average weekly earnings grew about two percent over the past 12 months, enough to traditionally keep pace with inflation.
Perhaps an even brighter sign that things are on the mend: in March 2016, the serious delinquency rate on mortgages was the lowest it had been since November 2007. At time of publication, about 3 in every 100 homes that were late on their mortgages were more than 90 days late, in foreclosure, or part of an REO portfolio at a bank. That is a massive improvement over recent years. “Delinquencies and foreclosure rates are now at pre-crash levels as the benefits of higher home prices, improving economic fundamentals, and years of cautious underwriting are being felt across the country,” said CoreLogic president and CEO Anand Nallathambi. He added that he believes this trend will continue and the serious delinquency rate will show “further substantive declines.”
Do you think that the housing market is truly on the mend?
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