The U.S. foreclosure rate ticked up 1.1% in August compared to July, but was still down 22.2% compared to August 2013, according to CoreLogic's National Foreclosure Report.
About 45,000 foreclosures were processed in August, compared to 58,000 in August 2013.
In the report, Anand Nallathambi, president and CEO of CoreLogic, says the total number of foreclosures completed in the 12 months leading up through August reached its lowest point since December 2007.
‘At the current foreclosure rate, the shadow inventory could fall below 500,000 units by year-end, which could provide a solid boost to the recovery in housing in 2015,’ Nallathambi says.
There were about 629,000 homes, or about 1.6% of all homes with a mortgage, in some stage of foreclosure, known as the foreclosure inventory, in August, down from 936,000 in August 2013, when the inventory reached 2.4% of all homes with a mortgage.
As of August, the foreclosure inventory had declined on a year-over-year basis for 34 straight months.
States with the highest foreclosure inventory as of August included New Jersey (5.8%), Florida (4.6%), New York (4.2%), Hawaii (3.0%) and Maine (2.7%). These five states account for almost half of all completed foreclosures nationally. According to the report, 28 states saw year-over-year declines in foreclosure inventory of 30% or more in August, with Utah and Idaho seeing year-over-year declines of 46% each.
‘Clearly there has been a large improvement in the market in the last few years, but five years into the economic expansion the foreclosure inventory remains at nearly three times the normal level,’ says Sam Khater, deputy chief economist at CoreLogic. ‘Since homeownership rates peaked in the second quarter of 2004, there have been 7 million completed foreclosures which account for 15% of all mortgages.’
To check out the full report, click here.