The quality of American mortgage loans continues to improve with the delinquency rate in May down 0.8 of a percentage point year-over-year according to CoreLogic
The quality of American mortgage loans continues to improve with the delinquency rate in May down 0.8 of a percentage point year-over-year according to CoreLogic.
Its Loan Performance Insights Reports shows that 4.5% of mortgages were in some stage of delinquency, compared to 5.3% in May 2016. The foreclosure inventory was down from 1% to 0.7%.
Serious delinquencies remained the same as April at 2% but were down 2.6% year-over-year. The rate in April and May was the lowest since November 2007 which was also 2%.
“Strong employment growth and home price increases have contributed to improved mortgage performance,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Early-stage delinquencies are hovering around 17-year lows, and the current-to-30-day past due transition rate remained low at 0.8%.”
However, Dr Northaft noted that these positives in the economy are also driving the shortage of affordable homes, making it hard for potential homebuyers.
The share of mortgages that transitioned from current to 30-days past due was 0.8% in May 2017 compared with 0.9% in May 2016.
“A prolonged period of relatively tight underwriting criteria has driven delinquencies down to pre-crisis levels across many parts of the country,” said Frank Martell, president and CEO of CoreLogic. “As pressure to relax underwriting standards increases, the industry needs to proceed carefully and take progressive, sensible actions that protect hard-fought improvements in mortgage performance.”
Its Loan Performance Insights Reports shows that 4.5% of mortgages were in some stage of delinquency, compared to 5.3% in May 2016. The foreclosure inventory was down from 1% to 0.7%.
Serious delinquencies remained the same as April at 2% but were down 2.6% year-over-year. The rate in April and May was the lowest since November 2007 which was also 2%.
“Strong employment growth and home price increases have contributed to improved mortgage performance,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Early-stage delinquencies are hovering around 17-year lows, and the current-to-30-day past due transition rate remained low at 0.8%.”
However, Dr Northaft noted that these positives in the economy are also driving the shortage of affordable homes, making it hard for potential homebuyers.
The share of mortgages that transitioned from current to 30-days past due was 0.8% in May 2017 compared with 0.9% in May 2016.
“A prolonged period of relatively tight underwriting criteria has driven delinquencies down to pre-crisis levels across many parts of the country,” said Frank Martell, president and CEO of CoreLogic. “As pressure to relax underwriting standards increases, the industry needs to proceed carefully and take progressive, sensible actions that protect hard-fought improvements in mortgage performance.”
