U.S. Foreclosure filings fell to a record low in 2019

U.S. Foreclosure filings fell to a record low in 2019

Foreclosure – a situation in which one’s home is seized by the government due to the owner’s inability to pay - was one of the dominant features of the 2006 – 2013 U.S. housing downturn.  Now, a strong economy and eight-years of home price growth have made mortgage foreclosures a relatively rare event. According to ATTOM Data Solutions, foreclosure filings were reported on 493,066 U.S. properties last year, down 83% from a peak of nearly 2.9 million in 2010.  The 493,066 properties with foreclosure filings in 2019 represented 0.36% of all U.S. housing units.  

Meanwhile, according to the Mortgage Bankers Association, the share of U.S. homeowners who were late paying their mortgages fell to a 25-year low. The delinquency rate (30 days or more past due) fell to 3.97% in the third quarter of 2019, the lowest rate since 1995.  Measuring delinquency rates is an important tool for analyzing the health of the mortgage market.

The booming economy continues to drive down housing market distress to record lows. With unemployment at 50-year lows, a Federal Reserve on hold with interest rates, and household net worth at record highs, the U.S housing market looks bright for 2020.