Mortgage delinquency rates lowest in decade in Central Valley region

November 14, 2017

 

Mortgage delinquency rates are the lowest in more than 10 years across the nation and in the Central Valley, according to the Loan Performance Insights Report released by a real estate data firm.

In its report, CoreLogic stated that mortgage delinquencies (mortgages 30 days or more past due and in foreclosure) were at 4.6 percent in August of this year. At the same time last year, the rate was at 5.2 percent, representing a 0.6 decline.

The foreclosure inventory rate is the lowest it has been for the month of August since 2006, sitting at 0.6 percent across the U.S., when it was 0.5 percent.

“Serious delinquency and foreclosure rates are at their lowest levels in more than a decade, signaling the final stages of recovery in the U.S. housing market,” said Frank Martell, president and CEO of CoreLogic. “As the construction and mortgage industries move forward, there needs to be not only a ramp up in homebuilding, but also a focus on maintaining prudent underwriting practices to avoid repeating past mistakes.”

The foreclosure rate for all of California was at 0.3 percent for August, a number that has remained steady for the past year.

In the report, the Stockton-Lodi and Modesto areas showed a decline in delinquent mortgages as well. Stockton-Lodi rates were down year-over-year to 3.5 percent from 4 percent.

Modesto was down 0.5 percent as well, from 3.9 in August of 2016 to 3.4 this year.

Two states in the U.S. that are showing increases in mortgage delinquencies are Texas and Alaska.

“The effect of the drop in crude oil prices since 2014 has taken a toll on mortgage loan performance in some markets,” said Dr. Frank Nothaft, chief economist for CoreLogic, in a statement. “Crude oil prices this August were less than half their level three years ago. This has led to oil-related layoffs and an increase in loan delinquency rates in states like Alaska and in oil-centric metro areas like Houston.”

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