Nashville-area homeowners continued to improve their financial standing in June: The 90-day delinquency rate among mortgage borrowers ticked down to 2.35 percent, half a point below where it was at the end of 2014. Here's how the delinquency and foreclosure rates have fared so far this year. And here's CoreLogic's national report.
The financial state of Nashville's homeowners continues to improve ever so steadily, according to the researchers at CoreLogic. (See the chart on the right.) At the end of March, barely 2.5 percent of all mortgages in Middle Tennessee were delinquent 90 days or more. That's down 70 basis points from a year earlier and a full point below the number of early 2014.
Improvement on the foreclosure side of the housing market have been a little harder to come by of late. But the 0.47 percent rate is close to a post-crash low and bode well both for continued housing price gains and for the profitabilty of banks and other home loan lenders.
The graphic below shows a slightly bigger picture in the Freddie Mac Multi-Indicator Market Index, which includes some payment data of the kind tracked by CoreLogic but also throws in information on a city's incomes, mortgage applications and overall job growth. Improvements in the last two of that trio have pushed Nashville's score to its highest point since before the Great Recession.
Nashville's MiMi gain in March was the fourth-best among the country's 100 largest cities. For more national perspective, click here.
It's not necessarily a surprise, but it is encouraging. Real estate research firm CoreLogic's latest numbers show that more and more Middle Tennessee homeowners are becoming current on their payments. The 2.71 percent delinquency rate for February was 70 basis points better than that of a year earlier and just about a full point below the number from October of 2013. That trend has had a positive effect on local banks' earnings and is showing little sign of slowing down.
The Nashville-area housing market finished 2014 with one out of 35 home mortgages being at least three months delinquent, according to research firm CoreLogic. That might sound like a lot but the 2.83 percent ratio is more than a full point below where it stood 15 months earlier. Similarly, the foreclosure rate among home loan lenders has come down steadily and is now below 0.5 percent. Here's how the region's numbers have trended over the past two years.
Standard & Poor's Financial Services executives have agreed to settle an investigation into the firm's ratings practices last decade. The company has agreed to pay the Department of Justice and almost 20 states $1.375 billion. Tennessee will get $25 million of that amount. Check out the state's release here.
More good news for local homeowners and bankers: The latest foreclosure and delinquent loan data from research firm CoreLogic show that 0.54 percent of local homes were in foreclosure in September, which is up slightly from the August figure and right in line with the average of the past five months. But the share of loans late 90 days or more dipped to 2.96 percent of the total, the first time since before the recession that number has dropped below 3 percent.
So it appears that Middle Tennessee's residential real estate sector has purged from its system almost all the bad loans and foreclosures it could. New data from CoreLogic shows that the region's home loan delinquency and foreclosures rates — which were still dropping steadily this spring — have bottomed out. They're not moving back up yet — and given the steady growth of the region, that may not happen soon — but the positive momentum has clearly petered out.
Negative equity among Nashville-area homeowners finished the first half of the year at 12.4 percent, down from more than 20 percent compared to the figure of 12 months earlier and almost three points better than at year-end 2013. So says housing research and marketing firm Zillow, which puts the total amount of Middle Tennessee negative equity at $2.7 billion and puts the biggest negative equity rates in the region's most rural counties. More than half of the people who still owe more on their mortgages than their properties are worth are less than 20 percent under water.
SEE ALSO: Zillow's release, headlined by a national negative equity number of 17.0 percent
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