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The Office of Economic Policy HOUSING DASHBOARD February 17, 2016 Recent housing market indicators suggest that housing activity continues to strengthen. Solid residential investment in 2015Q4 contributed 0.3 percentage point to GDP growth. Meanwhile, home price appreciation has moderated—from a double-digit pace in late 2013 and early 2014 to a more sustainable mid-single-digit pace now. This moderation occurs as high home values, in some areas, challenge affordability for potential homebuyers. In addition, home price valuations look to be somewhat elevated relative to pre-bubble norms. Although some mortgage borrowers continue to struggle in the wake of the crisis, delinquency and foreclosure rates are closing in on their pre-crisis ranges. The number of distressed sales also continues to drop. Now that most housing market indicators for the entirety of 2015 are available, this month’s Housing Dashboard features a special topic reviewing housing market developments in 2015. Housing Market Flash February 2016 Housing Market Flash Wednesday, February 17, 2016 Pre-bubble norm (2000-2002 Current average) Trough level Single-family homes New 921 Sales (thousands) Existing Inventory of homes available for sale New (months' supply at current sales rate) Existing 4,779 4.1 4.6 Housing starts 1,289 Building permits 1,257 CoreLogic HPI w/distressed sales 115.7 Inflation-Adjusted 111.6 Construction activity (thousands) Prices (index, Jan 2000 = 100) CoreLogic HPI Housing affordability 127 (NAR, index=100 when median family income qualifies for 80% LTV mortgage on a median priced home) 270 Feb-11 3,060 Jul-10 12.2 Jan-09 11.3 Jul-10 353 Mar-09 337 Jan-09 544 Dec-15 4,820 Dec-15 5.2 Dec-15 3.9 Dec-15 731 Jan-16 720 Jan-16 137.3 186.4 Nov-11 Dec-15 101.9 136.0 Nov-11 Dec-15 Current 12-month average versus yearearlier value 14.1% 6.7% -0.3 month(s) -0.4 month(s) 10.1% 6.8% 5.0% 6.3% 101.1 161.7 Jul-06 Dec-15 8 Jan-09 58 Feb-16 point(s) 117 Oct-08 158 Feb-16 point(s) Improved Improved Improved Improved Improved Improved Improved Improved -1.0% Current level versus prebubble norm (2000-2002) average -40.9% 0.8% 1.1 month(s) -0.7 month(s) -43.3% -42.7% 61.1% 21.9% 27.7% Weakened Sentiment 59 Homebuilder (NAHB, over 50 means majority view conditions positively) Home-buying conditions 152 (Reuters/Umich, index = good time - bad time + 100) 6 -1 Improved point(s) Improved point(s) Improved thousands 1 6 Demographics Household formation 1113 (thousands) Homeownership rate (percent) 67.7 100 461 2008-Q4 2015-Q4 290 thousands -653 63.5 63.7 -0.8 -4 2015-Q2 2015-Q4 percentage point(s) Weakened percentage point(s) 1 Special Topic: 2015 in Review February 2016 Housing market activity in 2015 posted solid gains, supported by a stronger labor market, low mortgage interest rates, and somewhat improved household formation. Stronger single- and multifamily construction activity contributed to higher residential investment compared with the level seen in 2014. However, construction activity and construction employment are low relative to their pre-crisis levels and relative to the level needed to support typical growth in the number of households and demolitions, suggesting that further improvements are likely. Also, new and existing home sales reached new, post-recession highs in 2015 as housing demand strengthened. Home prices rose in 2015, albeit at a more moderate and sustainable pace than in 2014, across all major home price indexes. Rising prices helped lift more borrowers from negative equity, though in states where home prices are still far below their earlier highs, negative equity remains more prevalent. In the mortgage market, low mortgage interest rates helped support housing demand and home sales in 2015. Accordingly, mortgage originations for home purchases increased roughly in line with sales activity. However, borrowers, particularly those with less-than-pristine credit histories or low downpayments, continued to face difficulties obtaining a mortgage. Starts and Permits New residential construction activity continued to recover and hit an 8-year high in 2015. Housing starts increased to 1.106 million in 2015, the highest level since 2007. Building permits, a more stable and forward-looking indicator of construction activity, rose to 1.164 million, also the highest total since 2007. As a result, residential fixed investment increased 8.7 percent in 2015, up from just 1.8 percent in 2014, and contributed 0.3 percentage point to GDP growth. Millions 2.4 2.1 1.8 1.5 1.2 0.9 0.6 Housing Starts Building Permits 0.3 0.0 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: U.S. Census Bureau Changes in Home Prices 24 Home prices grew at a modest pace. After rising at high single-digit and low double-digit rates in 2013, home price growth has moderated to expand at low single-digit rates in 2015, ranging from a 3.5 percent for the Zillow Home Values Index to 5.4 percent for the FHFA Home Price Index. 12-month percent change 16 8 0 20-City Case-Shiller -8 FHFA Purchase-Only CoreLogic -16 -24 Zillow '00 '02 '04 '06 '08 '10 Source: Standard and Poors, FHFA, CoreLogic, Zillow 2 '12 '14 '16 Special Topic: 2015 in Review Mortgage interest rates remained low. The average interest rate on new 30-year fixed-rate conventional mortgages settled was 3.85 percent in 2015, down from 4.17 percent in 2014, and only slightly higher than the 3.66 percent averaged in 2012. However, mortgage interest rates are expected to rise due to the Fed rate hikes in 2016. February 2016 Interest Rate of 30 Year Fixed-Rate Mortgages Percent 9 8 7 6 5 4 3 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: Freddie Mac Mortgage Applications Mortgage applications edged up thanks to an increase in purchase activity. The MBA Mortgage Applications Index inched Index, 2000:Jan 7 = 100 3000 up 1.6 percent in 2015, largely due to a 2500 12 percent jump in purchase applications. 2000 Refinance activity remained muted, with the annual average for 2015 4.9 percent below 210 Purchase (right scale) 180 150 Refinance (left scale) 90 its year-earlier level, as many borrowers 1000 have already refinanced into lower rates. 500 60 30 0 0 '00 '03 '06 '09 '12 '15 Source: Mortgage Bankers Association Credit Score at Mortgage Origination The median FICO score of newly originated 800 mortgages fell slightly in 2015 from around 750 760 to around 750, up from roughly 700 in the early 2000s. At the 10th percentile, the 120 1500 Score median 700 25th percentile FICO score for new mortgages was down to 650 642 by the end of 2015, compared with less 600 than 600 in the early 2000s. 550 10th percentile 500 '00 '02 '04 '06 '08 '10 '12 Source: FRBNY Consumer Credit Panel/Equifax Note: Credit Score is Equifax Riskscore 3.0; mortgages include first-liens only. 3 '14 Housing’s Importance to the Economy Residential investment continues to give a modest lift to GDP growth. Residential investment rose at an annual rate of 8.1 percent in 2015Q4, adding Percent 10.0 6.0 4.0 matching the average contribution over the 2.0 last four quarters. Data through January 0.0 track to make a somewhat smaller gain in 2016Q1. Residential Investment's Contribution to Real GDP 8.0 0.3 percentage point to real GDP growth, suggest that residential investment is on February 2016 -2.0 -4.0 -6.0 GDP (% Change, Annual Rate) Residential Investment's Contribution -8.0 -10.0 '00 '02 '04 '06 '08 '10 '12 '14 Source: Bureau of Economic Analysis Employment in residential construction continues to recover. Over the past year, it has increased by 12,500 jobs per month, compared with 13,700 jobs per month in the year-earlier period. The level of Employment in Residential Construction Millions Percent 4.0 4.0 Number Employed (left scale) Share of Total Private Employment (right scale) 3.5 3.5 3.0 3.0 2.5 2.5 2.0 2.0 1.5 1.5 employment remains relatively low: residential construction employment totaled just over 2.5 million workers in 2015Q4, accounting for roughly 2.1 percent of total private payroll employment, compared with around 2.6 percent in the early 2000s. '02 '04 '06 '08 '10 '12 '14 Note: Includes those employed directly in residential construction as well as related specialty trades. Source: Bureau of Labor Statistics Trillions Household Real Estate and Net Equity Housing wealth is nearing its earlier peak. The value of household real estate reached $22 trillion in 2015Q3, up from a Percent Market Value of Real Estate (left scale) Net Equity (left scale) Equity's Share of Value (right scale) 25 75 20 65 15 55 10 45 5 35 low of $16 trillion in 2011Q4. The current level is close to its 2006Q4 peak, but the sustainable level is higher than in 2006 because of population-driven growth in the housing stock and overall inflation. 0 25 '00 '02 '04 Source: Federal Reserve Board 4 '06 '08 '10 '12 '14 Housing Starts and Inventories February 2016 New residential construction activity continues on its gradual upward Starts and Permits Millions 2.0 trajectory despite some recent volatility. Single-family starts (light blue line) and 1.8 permits (dark blue line) dipped in 1.5 December. In the multifamily sector, 1.3 construction activity is back in the range 1.0 seen before the crisis, but the rapid rise in 0.8 rents suggests that construction activity is 0.5 not yet fully meeting demand. 0.3 Single-Family Starts Single-Family Permits Multifamily Starts Multifamily Permits 0.0 '00 '02 '04 Source: U.S. Census Bureau In February, builder confidence fell to a 9-month low, but remained close to the 10-year high registered in October. The 70 National Association of Homebuilders 60 index has recorded readings above 50 50 (meaning a majority of builders view the 40 market positively) for the last 20 months. 30 All three of the index’s components—sales 20 expectations over the next six months, 10 current sales, and buyer traffic—are above '00 '14 '16 '04 '06 '08 '10 '12 '14 '16 Unsold Homes Millions Thousands 4.5 4.0 was at 1.79 million units at the end of 3.5 December, the lowest level since January 3.0 700 Existing (left scale) 2.0 supply of existing homes available for sale; 1.5 for new homes, the available inventory is 1.0 600 500 Series average 2.5 current sales pace, there is 3.9-month equivalent to a 5.2-month supply. '02 Millions of existing homes for sale (dark blue line) (light blue line) was at 237,000. At the '12 Source: National Association of Homebuilders The inventory of homes for sale remains 2013. The stock of new homes for sale '10 0 their 2014 averages. well below historical averages. The stock '08 Builder Confidence Index 80 '06 400 300 Series average 200 New (right scale) 100 0 '02 '04 '06 '08 '10 '12 Source: National Association of Realtors and U.S. Census Bureau 5 '14 '16 Underpinnings of Housing Demand Mortgage interest rates remain very low by historical standards. The average interest rate on new 30-year fixed-rate conventional mortgages settled at a 9-month low of 3.65 percent in the week February 2016 Interest Rate of 30 Year Fixed-Rate Mortgages Percent 9 8 7 ending February 11. The current rate is only 34 basis points higher than the lowest rate recorded in 2012. 6 5 4 3 '00 The National Association of Realtors Housing Affordability Index suggests that housing remains affordable for the typical '04 '06 '08 '10 '12 '14 '16 Home Affordability Index 240 family. The index declined for the first time 220 in five months in December. The rebound in 200 house prices accounts for much of the 180 decline in affordability since its peak in 2013. 160 (Note that the index assumes a 20 percent 140 down payment; interest rates would be 120 higher and affordability would be lower for a 100 family that made a smaller down payment). '02 Source: Freddie Mac Record Affordability Index = 214.5 Historic Average (data since 1971) 80 '00 '02 '04 '06 '08 '10 '12 '14 '16 '14 '16 Source: National Association of Realtors Households remain positive about home Attitudes Towards Buying Index (Good minus Bad plus 100) buying conditions. The University of 180 Michigan Consumer Survey’s “Good Time to 170 Buy” Index remained higher than the long- 160 term average in mid-February. Low interest 150 rates continue to be the main factor cited 140 when respondents were asked why home- 130 buying conditions are good. 120 Long-Run Average (data since 1986) 110 100 '00 '02 '04 '06 '08 Source: University of Michigan Consumer Survey 6 '10 '12 Underpinnings of Housing Demand Senior loan officers at banks report easing of mortgage lending standards in recent quarters. Despite two quarters of moderate 60 the period of dramatic tightening during the 40 financial crisis. (Note that the level of the line 20 shown corresponds to the change in lending easing of lending standards and values above 0 representing a tightening). Net Percent of Banks Reporting Tightening Standards 80 quarters mark a period of sustained easing since standards, with values below 0 representing an FRB Senior Loan Officer Opinion Survey on Mortgage Lending 100 tightening at the end of 2014, the last four February 2016 Tightening 0 -20 Easing -40 90 94 98 02 08 10 14 Mortgage Originations by Credit Score Despite the easing, lending is still restrained, and riskier borrowers continue to have very limited access to mortgage credit. Mortgage originations have been rising over the past year, but the pick-up has been driven largely by borrowers with credit scores above 780. Billions of dollars <620 1,000 620-659 660-719 720-779 780+ 800 600 400 Originations by borrowers with credits scores below 780 are well below pre-crisis levels. Almost 200 no mortgages are being extended to borrower 0 with FICO scores below 660. Credit Score at Mortgage Origination The median FICO score of newly originated 800 mortgages has fallen slightly in recent quarters to 750 around 750, but it is still up from roughly 700 in the 700 early 2000s. At the 10th percentile, the FICO Score median 25th percentile 650 score for new mortgages was down to 642 by the 10th percentile end of 2015, compared with less than 600 in the 600 early 2000s. 550 500 '00 '02 '04 '06 '08 '10 '12 Source: FRBNY Consumer Credit Panel/Equifax Note: Credit Score is Equifax Riskscore 3.0; mortgages include first-liens only. 7 '14 Household Formation Household formation fell sharply in 2015Q4. Between mid-2006 and 2014Q3, the rate of household formation averaged February 2016 3.0 2.5 roughly half its historical average of 2.0 1.2 million per year. Household formation 1.5 surged at the end of 2014 and remained 1.0 above its historical average through 2015Q3. However, household formation Historic Average (data since 1956) 0.5 slowed drastically in the fourth quarter. In 0.0 the year ending in December, just 191,000 -0.5 households were formed. '00 working has seen a partial recovery. The 82 half of the decline that occurred during the recession. The strengthening labor market '04 '06 '08 '10 '12 '14 '16 Employment-to-Population Ratio Ages 25-34 Percent 84 individuals ages 25-34 has reversed over '02 Source: U.S. Census Bureau, Treasury calculation The proportion of young adults who are employment-to-population ratio for Household Formation Millions 80 78 76 should support household formation going 74 forward. 72 70 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: Bureau of Labor Statistics Growth in Rents vs. Overall Inflation Higher rents are an obstacle to young Year-over-year percent change 7.5 adults establishing their own households. The supply of rental housing appears to 5.0 CPI-U: Rent of Primary Residence have not risen as fast as demand and, as a result, rents have been increasing rapidly. 2.5 They outpaced overall inflation by 3 percentage points over the year ending in 0.0 December. CPI-U: All Items -2.5 '00 Source: BLS 8 '02 '04 '06 '08 '10 '12 '14 '16 Homeownership February 2016 The homeownership rate edged up in 2015Q4. The homeownership rate was 63.7 percent in 2015Q4, up from 63.5 in 2015Q2, which was the lowest reading Homeownership Rate Percent 70 68 since 1967Q4. The homeownership rate may stagnate in coming quarters as household formation continues to recover because newly formed households are more likely to rent before purchasing a home. 66 64 62 60 '80 '85 '90 '95 '00 '05 '10 '15 Source: U.S. Census Bureau First-time home buyers account for around half of purchase mortgage originations. The share of newly originated mortgages going to first-time buyers was 51.2 percent in December. Smoothing Percent 55 Share of Mortgages Accounted by First-time Buyers 53 through the normal seasonal fluctuations, the series appears to be on an uptrend—it 51 was 50.2 percent a year earlier. 49 47 '13 '14 '15 Source: American Enterprise Institute Primary Reasons for Renting among Young Renters who Prefer to Own 87 percent of households headed by young adults that are renting say that they would prefer to own if they could afford it. Of those households, the most Cannot qualify for a mortgage 35 commonly cited reasons for not owning are lack of downpayment (59 percent) and not being able to qualify for a mortgage to buy Cannot afford downpayment 59 a home (35 percent). 0 10 20 30 40 Percent 50 60 70 Source: Report on Economic Well-Being of U.S. Households in 2014, Federal Reserve Board 9 Home Sales February 2016 New single-family home sales have rebounded in recent months but are above their levels of a year ago. At an 1600 annual rate of 544,000 in December, they 1400 were 24 percent above their average level in 1200 2014. New single-family home sales 1000 averaged 502,000 units for all of 2015, the 800 best annual performance since 2007. Still, 600 the current pace of sales is still only about 400 half the level seen prior to the boom in the 200 early 2000s. 0 '02 Sales of existing single-family homes bounced back in December following declines in the previous two months, which were due in part to new disclosure New-Single Family Home Sales Thousands '04 '06 '08 '10 '12 '14 '16 Source: U.S. Census Bureau Millions Existing Single-Family Home Sales 7 6 requirements for mortgages originated after October 1. The new requirements have reportedly increased the amount of time it takes to close on a sale. Existing single-family home sales averaged 5.23 5 4 3 million units in 2015, up 6.3 percent from 2014, and the highest annual total since 2 '00 2006. (January data will be released on '02 '04 '06 '08 '10 '12 '14 '16 Source: National Association of Realtors February 23). The National Association of Realtors Pending Existing Home Sales Index, 2002: Jan = 100 index of pending sales of existing homes 130 ticked up in December and was above its 120 level of a year ago. The index is a leading 110 indicator of existing home sales which are 100 recorded at the closing of the sale. The National Association of Realtors is 90 projecting that existing home sales will rise 80 1.5 percent in 2016. 70 60 '02 '04 '06 '08 '10 '12 Source: National Association of Realtors, Treasury Calculation 10 '14 '16 Home Prices February 2016 After rising at a high single-digit to low-double-digit pace in late 2013 and early 2014, the pace of home price appreciation has eased. Home prices are Changes in Home Prices 24 12-month percent change 16 now growing at a more sustainable 8 low-to-mid single-digit pace. 0 20-City Case-Shiller -8 FHFA Purchase-Only CoreLogic -16 -24 Zillow '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: Standard and Poors, FHFA, CoreLogic, Zillow Home prices remain below their precrisis peaks. Most measures for the nation as a whole are currently around early 2005 levels. Forecasters generally believe that home price appreciation will remain moderate going forward. Participants in the 2016Q1 Pulsenomics/Zillow home price Home Prices Index, January 2000 =100 220 20-City Case-Shiller FHFA Purchase-Only CoreLogic Zillow 200 180 160 140 survey expect home prices to rise 3.7 percent over the four quarters of 2016. 120 100 '00 '02 '04 '06 '08 '10 '12 '14 '16 Source: Standard and Poors, FHFA, CoreLogic, Zillow The ratio of home prices to rents, a common way to assess whether home prices are overvalued, remains well below 1.8 its pre-crisis peak. That said, the 1.6 substantial appreciation of home prices Price-to-Rent Ratio Percent 2.0 since late 2012 has pushed up this ratio, and 1.4 it is now noticeably above its pre-crisis 1.2 range. 1.0 0.8 '84 '87 '90 '93 '96 '99 '02 '05 '08 '11 Source: Ratio of CoreLogic National Home Price Index to CPI Owner's Equivalent Rent. Both Indexes set to 100 in January 1983. 11 '14 Mortgage Originations February 2016 Applications for home purchase Mortgage Applications mortgages have been volatile of late. Index, 2000:Jan 7 = 100 The Fed rate hike and new mortgage 3000 disclosure requirements may have caused 2500 fluctuations in recent months. Purchase 210 Purchase (right scale) 180 150 2000 applications remain well below pre-crisis Refinance (left scale) levels. Refinancing activity has been very 1500 low since mid-2013 as most borrowers 1000 120 90 who have been able to refinance have 60 500 already done so. 30 0 0 '00 '03 '06 '09 '12 '15 Source: Mortgage Bankers Association New mortgage originations have increased over the past year but remain low by pre-crisis standards. New mortgage originations rose to $437 billion in 2015Q4, up from a low of $354 billion in 2014Q4. The low level of mortgage originations stands in contrast to the pattern of some other forms of New Originated Installment Loan Balances Billions Billions 250 900 Auto Loan (Left Axis) 200 700 Mortgage (Right Axis) 150 originations, which have been increasing briskly along with sales and now stand near the top of their historical range. 400 300 200 50 100 0 0 '04 '06 70 percent of new mortgages were backed by the FHA, VA, or GSEs in the first three quarters of 2015 (dark blue and light blue portions of bars). While bank portfolio lending has increased noticeably, the private-label mortgage-backed securities market has experienced essentially no recovery since collapsing in late 2007. '10 '12 '14 Mortgage Originations by Investor backed by the government has fallen since higher than pre-crisis levels. About '08 Source: Federal Reserve Bank of New York The share of new mortgage originations its 2009 high, but remains significantly 600 500 100 household credit, including auto loan 800 GSE securitization FHA/VA securitization PLS securitization Portfolio Share, percent 100% 80% 60% 40% 20% 0% '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 2015 Q1-3 Source: Inside Mortgage Finance and Urban Institute 12 Delinquencies, Foreclosures and Distressed Sales February 2016 Mortgage foreclosure and delinquency Foreclosure and Delinquency Rates Percent rates continue to normalize. The share of 12 homes in foreclosure declined to 1.9 percent 10 of outstanding loans in 2015Q3. The rate of mortgages in default (90+ days delinquent or in foreclosure) fell to 3.6 percent in 2015Q3, compared with a pre-crisis average of around 2 percent. Percent of loans 90 days or more delinquent or in foreclosure 8 6 Percent of loans in foreclosure 4 Percent of loans 90 or more days delinquent 2 0 '00 '02 '04 '06 '08 '10 '12 '14 Source: Mortgage Bankers Association and Haver Analytics Re-Default Rate 24 Months after Modification Re-default rates for borrowers who have received a mortgage modification have 80 Percent Fannie Mae Government-Guaranteed Portfolio Loans run significantly lower for mortgages that were modified more recently. Mortgages Freddie Mac Private Overall 60 that were modified in 2013 (24 months ago) had re-default rates that were between 32 40 and 55 percentage points lower than those modified in 2008. 20 0 '08 '09 '10 Source: OCC Mortgage Metrics Report for Q1-2015 '11 '12 '13 Distressed Sales as a Percent of Total Sales The shares of sales represented by REO sales and short sales have trended down over the past 3 years. In November 2015, Percent 35 Short Sales Share REO Sales Share 30 REO sales ticked up to nearly 9 percent of 25 total sales while short sales remained around 20 3 percent. 15 10 5 0 '06 '07 Source: CoreLogic 13 '08 '09 '10 '11 '12 '13 '14 '15 Negative Equity February 2016 Share of Loans that are Underwater by Loan-to-Value Ratio Rising home prices have greatly reduced Percent the number of underwater borrowers. 30 The share of mortgage loans with negative equity was 8.1 percent in 2015Q3, down from 10.2 percent in 2015Q1. The number of homes now underwater stands at 4.1 million, a 66 percent drop since the 2011 peak. Mortgages that are very underwater, with negative equity exceeding 25 percent, have declined and 100-105 25 105-125 125+ '14 '15 20 15 10 5 0 '10 are now 37 percent of all underwater '11 '12 '13 Source: CoreLogic Equity Report, 2015 Q2 mortgages. Amount of Negative Equity Billions of dollars 800 The aggregate amount of negative equity continues to fall. Since 2010Q1, aggregate negative equity has fallen from over $800 billion to around $300 billion in 2015Q3. 600 400 200 0 '10 '11 '12 '13 '14 '15 Negative Equity Share in Top 5 States 20 Negative equity rates are still very high in some states. Around 20 percent of 19 17.8 18 16 14.6 14 mortgaged residential properties in Nevada 12 and Florida still have negative equity. 10 However, these rates have fallen by more 8 than half in these two states since the 6 beginning of 2013. 4 12.3 12.1 RI MD 2 0 NV 14 FL AZ State Detail February 2016 Serious delinquencies have fallen across Serious Delinquencies for 25 Highest-Rate States: Q2 2015 the country but the degree of improvement varies by state. They remain near peak levels in some states, particularly in judicial foreclosure states such as New Jersey and New York. However, serious delinquencies are down nearly 64 percent from their peak in Florida, a judicial state Percent, since Q1 2000 25 Q2 2015 value Minimum since Q1 2000 Maximum since Q1 2000 20 15 10 that passed a law in June 2013 speeding up 5 the foreclosure process. Serious hard-hit areas with flexible foreclosure laws, 0 NJ NY FL ME CT RI MD NV DE MS IL MA PA DC OH HI NM IN LA VT OK AL KY SC delinquencies have also fallen markedly in Source: Mortgage Bankers Association/Haver such as Nevada. Foreclosure Inventories by State as a Percent of All Mortgage Homes Foreclosure inventories have declined in many states but remain relatively high in others. Judicial foreclosure is an important factor: 13 of 23 states that employ the practice have noticeably elevated rates (shaded red). Other states with high inventories, like Nevada, are still struggling economically. Source: CoreLogic Market Pulse, data as of November 2015 15
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