Transition rate at lowest rate in almost 20 years
Mortgage delinquencies were lower in April, the latest month of data analyzed by CoreLogic.
The firm’s Loan Performance Insights Report shows that 4.2% of mortgages were in some stage of delinquency nationally, down from 4.8% a year earlier.
There was also a reduction in the rate of mortgages in the foreclosure process; down from 0.7% in April 2017 to 0.6% in April 2018. The foreclosure inventory rate has been at 0.6% since August 2017 having last been that low in 2007.
Early-stage delinquencies were also lower in April. The share of loans that were 30-59 days past due fell to 1.8% from 2.2% a year earlier. There was no change in the share of mortgages that were 60-89 days past due but the serious delinquency rate (90+ days past due) fell to 1.9%.
“Job growth, home-price appreciation, and full-doc underwriting have pushed delinquency and foreclosure rates to the lowest point in more than a decade,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The latest CoreLogic Home Price Index report revealed the annual national home price growth was 7.1% in May, the fastest annual growth in four years. U.S. employers have also continued to employ more individuals, as employment rose by 2.4 million throughout the last 12 months with 213,000 jobs added last month alone. Together, this heightened financial stability is pushing delinquency and foreclosure rates to record lows.”
The rate of mortgage loans transitioning from current to 30 days past due was 0.8%, down from 1.2% in April 2017 and the lowest rate since 2000.
Hurricane states still showing elevation
The only states still showing a rise in 90+ days past due loans are those impacted by the hurricanes.
“Delinquency rates are nearing historic lows, except in areas impacted by extreme weather over the past 18 months, reflecting a long period of strict underwriting practices and improved economic conditions,” said Frank Martell, president and CEO of CoreLogic. “Last year’s hurricanes and wildfires continue to affect today’s default rates. The percent of loans 90 days or more delinquent or in foreclosure are more than double what they were before last autumn’s hurricanes in Houston, Texas and Naples, Florida. The 90-day-plus delinquent or in-foreclosure rate has also quadrupled in Puerto Rico.”
