While the economic crisis and subsequent wave of government regulations and civil suits have resulted in a tightening of credit among mortgage lenders and, thus, a significant decrease in business, there is a silver lining: The 2013 vintage of mortgages is the best performing in the past 10 years, according to CoreLogic's MarketPulse report for November.
The report finds that although credit has tightened in recent years, the rate of serious delinquency (90 or more days delinquent) has fallen dramatically – from 8.5% at its peak in January 2010 to 5.4% as of July of this year.
Still, the current delinquency rate remains higher than the normal 1% to 2% range seen in the early 2000s, CoreLogic says.
According to the report, as of September, about 902,000 homes in the U.S. were in some stage of foreclosure – a decrease of about 3.3% compared to August, and down about 33% compared to the 1.4 million in some stage of foreclosure in September 2012.
The foreclosure inventory as of September represented 2.3% of all homes with a mortgage compared to 3.2% in September 2012. September marked the ninth consecutive month with a year-over-year decline of at least 20%.
There were about 51,000 completed foreclosures in September, down 39% compared to September 2012, when there were about 84,000. On a month-over-month basis, completed foreclosures declined 0.7%. As a basis for comparison, completed foreclosures averaged about 21,000 per month from 2000 to 2006.
The report finds that home prices continued their ascent in September, increasing 12% compared to September 2012 (10.8% excluding distressed sales). The increase in home prices, however, appeared to already be stabilizing, with prices rising only 0.2% compared to August. Nevada led the country in terms of home price appreciation, with a 25.3% year-over-year increase; however, that's still 41.4% below the home price peak in 2006 in that state. Rounding out the top five states for home price appreciation were California (+22.5%), Arizona (+14.6%), Georgia (+14.4%) and Michigan (+13.9%).
Home sales were up 22% in September, year over year. New home sales were also up 22% compared to last year. Sales of previously owned homes rose 34% year over year and accounted for 77% of all home sales for September. Distressed sales accounted for about 15% of all home sales in September. Real estate owned property sales accounted for 8% of all sales – a decrease of about 18% compared to September 2012.
To download a copy of the full report, click here.