The percentage of loans 30 days or more past due and the foreclosure inventory rate both dropped during August, according to CoreLogic’s latest Loan Performance Insights Report.
Nationwide, 4.6 percent of mortgages were in some form of delinquency in August 2017, a 0.6 percent decrease compared with the 5.2 percent in August 2016, CoreLogic found. Additionally, the share of mortgages in some form of the foreclosure process during August 2017 was 0.6 percent, down from the 0.9 percent in August 2016.
“The effect of the drop in crude oil prices since 2014 has taken a toll on mortgage loan performance in some markets,” CoreLogic Chief Economist Frank Nothaft said in a release. “Crude oil prices this August were less than half their level three years ago. This has led to oil-related layoffs and an increase in loan delinquency rates in states like Alaska and in oil-centric metro areas like Houston.”
The rate for early-state delinquencies, 30-59 days past due, was 2 percent in August 2017, down slightly from 2.1 percent in August 2016, CoreLogic reported. The share of mortgages that were 60-89 days past due in August 2017 was 0.7 percent, unchanged from August 2016. The serious delinquency rate (90 days or more past due) was 1.9 percent in August 2017, down 0.5 percent year over year from 2.4 percent in August 2016.
“Serious delinquency and foreclosure rates are at their lowest levels in more than a decade, signaling the final stages of recovery in the U.S. housing market,” CoreLogic President and CEO Frank Martell said. “As the construction and mortgage industries move forward, there needs to be not only a ramp up in homebuilding, but also a focus on maintaining prudent underwriting practices to avoid repeating past mistakes.”