The number of borrowers past due on their mortgage continues to decline
The share of delinquent borrowers plunged to its lowest level since the onset of the pandemic, down to 3.9% of all delinquent mortgages in September.
According to CoreLogic, this represents a 2.4% drop from September 2020, when the overall delinquency rate was 6.3%. Comparatively, it was 3.8% in September 2019.
“The economic recovery has pushed down the percent of delinquent borrowers to the lowest level since the pandemic began,” CoreLogic chief economist Frank Nothaft explained. “The number of borrowers past due on their mortgage doubled between March and May 2020. The past-due rate in September 2021 was the lowest since March 2020.”
Annually, early-stage delinquencies were down from 1.5% to 1.1%, adverse delinquencies dipped from 0.7% to 0.3%, and serious delinquencies fell from 4.2% to 2.4% in September.
The foreclosure inventory rate also remained at its lowest level since 1999, down from 0.3% to 0.2% year over year.
Read more: Home equity gains reach record $3.2 trillion
“Record home equity levels have been a boon to many homeowners navigating the cross-currents of the pandemic,” said Frank Martell, president and CEO of CoreLogic. “Not only have homeowners used this equity to fuel a record level of home improvements and renovation, it has proven to be a vital factor in helping families ward off foreclosure, pay down existing debt and weather changing market conditions.”
