Nationwide Foreclosure Rates Are Down
CoreLogic Chief Economist Dr. Frank Nothaft’s most recent press release has revealed that the share of home mortgages in foreclosure has officially dropped to the lowest level it has been in the past twenty years. Already well below the average pre-crisis level of 6%, the United States went from sitting at 4.9% in January of 2018, down to 4% in January of 2019. This drop has been reflected across all delinquency rates and is indicative of a dramatic increase in stability since The Housing Market Crash of 2007.
The Stages of Foreclosure
There are three stages in foreclosure, starting with early-stage delinquency. Mortgages 30 to 59 days overdue fall in this category and have dropped from 2% in January of 2018 down to 1.9% in January 2019. The same trend was reflected among mortgages 60 to 89 days overdue, going down from 0.8% to 0.7% respectively. However, the most apparent change in occurred in the serious delinquency rate. Mortgages 90 or more days over due dropped by a dramatic rate from 2.1% in January 2018 all the way down to 1.4% in January of 2019.
Rates Across the Nation
The actual rate varies by state. Currently, Colorado is leading the pack with the lowest rate of mortgages at least thirty days past due, sitting comfortably at just below 2%. On the opposite end of the spectrum, Mississippi currently holds the highest rate at approximately 8.5%. Even though that number may seem discouragingly high, it’s actually a drop from where Mississippi was sitting last year. As a matter of fact, every state except for North Dakota (who stayed the same) saw a drop in their foreclosure rate since January of 2018.
Foreclosure in Urban Areas
Though high rates tend to, in general, plague states considered to be more “rural”, there’s still plenty of fluctuation even within the largest cities in America. Take for example New York and Miami, where their rate of mortgages at least thirty days overdue is sitting around 5%. This is more than double those of Denver and San Francisco, both of which are below 2%. However, 5% still isn’t too shabby, and with the current condition of the housing market, it’s clear to see why “desirable” places to live in the United States are currently seeing these remarkable lows. As Dr. Nothaft explains, “Income growth, home appreciation, and sound underwriting combined have pushed delinquency rates to their lowest level in twenty years.”
Not to mention, his claim is directly backed by a statement made by the president and CEO of CoreLogic, Frank Martell. “As the economic expansion continues create jobs and low mortgage rates support home buying this spring, delinquency rates are likely to trend lower during the coming year. The decline in delinquency rates has occurred in nearly all parts of the nation.”
If you are behind on bills and considering foreclosure as an option, contact Elias Dsouza. He has the skills and experience you need to fully understand all options.