CoreLogic says loans in disaster-affected areas remain a risk
The national rate of mortgages that were at some stage of delinquency fell to 4.3% in June, down 0.3 percentage points.
The foreclosure inventory rate – the share of mortgages at some stage of the foreclosure process – was 0.5%, down 0.2 percentage points to the lowest rate since 2006.
The data, revealed by CoreLogic, also shows that the rates for early-stage delinquencies (30 to 59 days past due) was 2% while the rate of those loans 60-89 days past due was 0.6%; both of these rates are unchanged from June 2017.
Meanwhile, the serious delinquency rate (90+ days past due or in foreclosure) decreased by 0.2 percentage points to 1.7% and was the lowest since 2007.
The share of mortgages that transitioned from current to 30 days past due was 0.9% in June 2018, unchanged from June 2017.
“A solid labor market enables more homeowners to remain current on their mortgage,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The national unemployment rate in June 2018 was 4%, the lowest for June in 18 years.”
Disaster hit areas still at risk
Delinquency rates in areas hit by wildfires, hurricanes or other natural disasters have jumped though as families deal with financial disruption and tragedy.
“Due to last year’s hurricane season, Florida and Texas experienced increases in serious delinquency rates over the past year,” said Frank Martell, president and CEO of CoreLogic. “Neighborhoods impacted by similar disasters in 2018 should also expect to see a spike in delinquencies in the coming year. With storms and wildfires currently impacting multiple areas of the country, homeowners, lenders and servicers should remain vigilant of potential impacts, particularly those in California, Hawaii and the Rocky Mountain and Gulf Coast states.”
