The U.S. foreclosure rate has dropped to its lowest level since 2007, mostly because of the continuing decline in loans made before 2009 during the height of the subprime bubble.
There were 43,000 completed foreclosures in June, down from 50,000 in June 2014, reports CoreLogic in its latest update. The seriously delinquent rate is at 3.5 percent, the lowest level since January 2008.
About 472,000 homes in the United States were in some stage of foreclosure, compared to 664,000 in June 2014. This was the 44th consecutive month with a year-over-year decline.
As of June 2015, the foreclosure inventory represented 1.2 percent of all homes with a mortgage, compared to 1.7 percent in June 2014.
“The decline has not been uniform geographically, as the foreclosure rate varies across metropolitan areas,” says Frank Nothaft, chief economist at CoreLogic. “In the Denver and San Francisco areas, the foreclosure rate has fallen to 0.3 percent, whereas in the Tampa market the rate is 3.5 percent and in Nassau and Suffolk counties it is an elevated 4.8 percent.”
The decline foreclosure rate is the result more stringent underwriting criteria for loans originated since 2009. And that has helped to lower the national seriously delinquent rate, said Anand Nallathambi, president and CEO of CoreLogic.
“Serious delinquency is at the lowest level in seven and a half years reflecting the benefits of slow but steady improvements in the economy and rising home prices,” said Nallathambi.