CoreLogic® (NYSE: CLGX), Irvine, Calif., on Tuesday said its April 2016 National Foreclosure Report shows foreclosure inventory declined by 23.4% and completed foreclosures declined by 15.8% compared with April 2015. The number of completed foreclosures nationwide decreased year over year from 43,000 in April 2015 to 37,000 in April 2016, representing a decrease of 68.9% from the peak of 117,813 in September 2010.
The foreclosure inventory represents the number of homes at some stage of the foreclosure process and completed foreclosures reflect the total number of homes lost to foreclosure. Since the financial crisis began in September 2008, there have been approximately 6.2 million completed foreclosures nationally, and since home ownership rates peaked in the second quarter of 2004, there have been approximately 8.3 million homes lost to foreclosure.
As of April 2016, the national foreclosure inventory included approximately 406,000, or 1.1%, of all homes with a mortgage compared with 530,000 homes, or 1.4%, in April 2015. The April 2016 foreclosure inventory rate is the lowest for any month since September 2007.
CoreLogic also reported that the number of mortgages in serious delinquency (defined as 90 days or more past due including loans in foreclosure or REO) declined by 21.6% from April 2015 to April 2016, with 1.1 million mortgages, or 3%, in this category. The April 2016 serious delinquency rate is the lowest in more than eight years, since October 2007.
“The recovery in home prices and improved labor market have contributed to the drop in seriously delinquent rates,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Over the 12 months through April, the CoreLogic Home Price Index for the U.S. rose 6.2% and the labor market gained 2.6 million jobs. We also found that the seriously delinquent rate fell by about three-quarters of a percentage point.”