Foreclosures Fall to Lowest Level Since 2000

April 8, 2019
Increase in home equity contributes to low foreclosure rate.


CoreLogic, Irvine, Calif., said despite elevated delinquency rates in areas affected by hurricanes and wildfires, overall delinquency and foreclosure rates fell to levels not seen since 2000. The company's monthly Loan Performance Insights Report said nationally, 4.1 percent of home loans were in some stage of delinquency (30 days or more past due, including those in foreclosure) in December, a 1.2 percentage point decline in the overall delinquency rate from a year ago (5.3 percent). CoreLogic said as of December, the foreclosure inventory rate fell to 0.4 percent, down 0.2 percentage points from a year ago, tying the November rate as the lowest for any month since at least January 2000. The rate for early-stage delinquencies (30-59 days past due) fell to 2 percent in December, down from 2.4 percent a year ago. The share of home loans 60-89 days past due in December fell to 0.7 percent, down from 0.8 percent a year ago. The serious delinquency rate--90 days or more past due, including loans in foreclosure--fell to 1.5 percent in December, down from 2.1 percent in December 2017. CoreLogic said the serious delinquency rate has been steady at 1.5 percent since August, the lowest level for any month since March 2007. "Our latest home equity report found that the average homeowner saw a $9,700 increase in their equity during 2018," said CoreLogic Chief Economist Frank Nothaft. "With additional ‘skin in the game,' rising equity reduces the chances of a foreclosure, helping to push the foreclosure rate down to its lowest level since at least 2000." 

Source: The Mortgage Bankers Association