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CoreLogic: U.S. No Longer has ‘Foreclosure Rate’ Problem

The U.S. foreclosure rate dropped to 3.6% in May from 2018’s 4.2% – and many of the new foreclosures were in areas hit by some kind of natural disaster.

NEW YORK – CoreLogic’s Home Price Index report for May shows a drop in the share of mortgages in some stage of delinquency, falling 3.6% nationally in May from 4.2% in 2018.

The share of mortgages in some stage of foreclosure fell to 0.4% over the same period, a decline of 0.1 percentage points, tying the prior six months as the lowest for any month since at least January 1999.

Meanwhile, 1.7% of mortgages were in early-stage delinquency (30 to 59 days past due), down 1.8 percentage points on a year-over-year basis.

“Communities that experienced a rise in delinquencies are generally those that also suffered from natural disasters,” says CoreLogic Chief Economist Frank Nothaft. “ Last year’s hurricanes and wildfires, and this spring’s severe flooding from heavy rainstorms and snowmelt, have pushed delinquency rates higher in these impacted communities.”

The nation’s overall delinquency rate has declined on an annual basis for 17 straight months, but 20 metro areas recorded at least a small year-over-year increase in overall delinquency in May.

Source: HousingWire (08/13/19) Lloyd, Alcynna

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