Tuesday’s CoreLogic May 2016 National Foreclosure Report provides further evidence that the housing market may be reaching a quote new normal. The report showed that foreclosure inventory as well as completed foreclosures continued to decline in May 2016 from where it stood the prior year in May 2015. Despite the decline, the foreclosure rate remains twice that of the national long-term average. This is due to the individual rates on a state level and is not, in fact, conducive to the progress already made nationally.
On a month-over-month basis, CoreLogic reported that the foreclosure inventory fell 3 percent in comparison to April 2016. It was also reported that completed foreclosures rose 5 point 5 percent from the 36 thousand reported for April 2016 to 38 thousand in May 2016. It was also found that the number of mortgages in serious delinquency decreased by 21 point 6 percent in May 2016 from the previous year to 1 point 1 million mortgages, or 2 point 8 percent of total mortgages. The serious delinquency rate for May 2016 is the lowest it has been in more than eight years, according to the report.
The introduction of the CHOICE Act—the Republicans’ proposed alternative to Dodd-Frank—last month by Rep. Jeb Hensarling (R-Texas), Chairman of the House Financial Services Committee, has sparked even more fierce debate between the parties in his Committee. On Tuesday in a full Committee hearing focusing on the capital requirements of the CHOICE Act, the tension was evident as both sides presented their cases for why they believe the CHOICE Act would or would not help the financial industry and the economy.