Although tighter credit, lack of affordability and low inventory remain critical issues, the U.S. housing market is now mostly healed from the effects of the Great Recession, with delinquencies and foreclosures nearly dropping to pre-crisis levels.
In fact, according to Black Knight Financial Services' ‘First Look’ Mortgage Report, the national foreclosure rate in April dropped to its lowest point since September 2008 – although there was a slight seasonal increase in the early delinquency rate.
According to the report, the total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) increased about 1.84% in April, compared to March, to reach 5.62% of all mortgages. However, on a year-over-year basis, early delinquencies were down 9.5%.
The total U.S. foreclosure pre-sale inventory rate was 2.02% in April, down about 5% compared to March and down a whopping 36.13% compared to a year ago.
About 78,800 foreclosure starts were recorded in April, down about 10.56% compared to March and down 38.2% compared to April 2013.
The monthly pre-payment rate in April was 0.87%, up about 8.75% compared to March but down 54.57% compared to April 2013.
Foreclosure sales represented 1.96% of loans in late-stage (90-plus days) delinquency – an increase of 7.17% compared to March but down 11.41% compared to April 2013.
About 2.82 million properties were 30 or more days past due, but not in foreclosure – an increase of about 51,000 compared to March, but down by about 290,000 compared to April 2013.
About 1.19 million properties were 90 or more days past due, but not in foreclosure, down about 12,000 compared to March and down about 207,000 compared to April 2013.
About 1.02 million properties were in foreclosure pre-sale inventory in April, down by 54,000 compared to March and down by 572,000 compared to April 2013.
About 3.84 million properties were 30 or more days past due or in foreclosure, down about 3,000 compared to March and down about 862,000 compared to April 2013.
States with the highest percentage of early-stage delinquencies in April included Mississippi (13.81%), New Jersey (12.87%), Florida (11.69%), New York (11.01%) and Louisiana (10.75%).
States with the lowest percentage of early-stage delinquencies in April included Montana (3.97%), Alaska (3.91%), Colorado (3.85%), South Dakota (3.45%) and North Dakota (2.57%).
States with the highest percentage of late-stage delinquencies included Mississippi (5.21%), Nevada (3.92%), Rhode Island (3.73%), Alabama (3.58%) and Massachusetts (3.54%).