The current real estate market in the U.S., with home shortages, price appreciation and a thriving job market, have pushed down the number of foreclosures and mortgage delinquencies. California and the Bay Area are reporting lower numbers than the national average.
CoreLogic’s recent Loan Performance Insight Report, which tracks the health of the mortgage market through June 2017, has the national foreclosure rate at an all-time low of 0.7%, the lowest in 10 years. The number of borrowers delinquent on their mortgages by 30 days or more dropped to 4.5%. The drop is being attributed to an increase in home pricing, up 6% since June 2016 and the addition of 2.2 million jobs over the last year.
California’s foreclosure rate was 0.3% as of June down from 0.4% a year earlier. The number of 30+ day delinquencies also dropped to 2.8%.
The Santa Rosa, San Francisco and Napa areas had slightly lower foreclosure rates than the state average, all at 0.2%, while San Jose fell in line with the state average of 0.4%.
Home price appreciation and a thriving job market have pushed down foreclosures and mortgage delinquencies across the country, with California and the Bay Area posting lower numbers than the national average.
Mortgage delinquency rates are expected to decrease further over the next year due to continued job growth and projected home price appreciation of 5%.