The gap between the delinquency rates of those with lower and higher credit scores is shrinking
The first quarter of the year brought in good news as mortgage delinquencies declined for both borrowers with a credit score below and at or above 660, according to the National Association of Home Builders.
The proportion of mortgages 90 or more days delinquent decreased by 10 basis points in Q1 2017 to 1.7% from 1.8% in Q4 2016. The share of FHA-insured mortgages that are delinquent or are in the process of foreclosure is standing at 2.6%, which is below the 2005-2008 average of 4.1%.
The standing for both VA and conventional loans are lower – the share of VA loans 90 or more days delinquent or going into the foreclosure process is below its average in 2005-2007; the percentage of conventional loans remain 20 basis points above its average in 2005-2007 at 1.3%.
The gap between the delinquency of rate of those with a credit score below and at or above 660 has also shrunk since its peak level in 2010.
According to the NAHB, 4.6% of mortgage-holders with a credit score below 660 are 90 or more days delinquent. That’s 8.6 percentage points below the peak level. Meanwhile, 3.5% of mortgage-holders with a credit score at or above 660 are delinquent, 2.7 percentage points below the peak level.
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Delinquency rate plummets to 11-year low
Delinquent mortgages on the decline – CoreLogic
The proportion of mortgages 90 or more days delinquent decreased by 10 basis points in Q1 2017 to 1.7% from 1.8% in Q4 2016. The share of FHA-insured mortgages that are delinquent or are in the process of foreclosure is standing at 2.6%, which is below the 2005-2008 average of 4.1%.
The standing for both VA and conventional loans are lower – the share of VA loans 90 or more days delinquent or going into the foreclosure process is below its average in 2005-2007; the percentage of conventional loans remain 20 basis points above its average in 2005-2007 at 1.3%.
The gap between the delinquency of rate of those with a credit score below and at or above 660 has also shrunk since its peak level in 2010.
According to the NAHB, 4.6% of mortgage-holders with a credit score below 660 are 90 or more days delinquent. That’s 8.6 percentage points below the peak level. Meanwhile, 3.5% of mortgage-holders with a credit score at or above 660 are delinquent, 2.7 percentage points below the peak level.
Related stories:
Delinquency rate plummets to 11-year low
Delinquent mortgages on the decline – CoreLogic
