The mortgage delinquency rate fell to 4.2% in April, down from 4.8% in April 2017, according to CoreLogic’s Loan Performance Insights report.
Early-stage delinquencies – defined as 30 to 59 days past due – represented 1.8% of all loans in April, down from 2.2% in April 2017.
The share of mortgages that were 60 to 89 days past due was 0.6%, unchanged from April 2017.
The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.9%, down from 2.0% a year earlier.
It was the lowest serious delinquency rate for April since 2007, when it was 1.6%.
As of the end of April the foreclosure inventory stood at 0.6%, down 0.1 percentage points from 0.7% in April 2017.
Since August 2017, the foreclosure inventory rate has been steady at 0.6%, the lowest level since June 2007, when it was also 0.6%.
The April foreclosure inventory rate was the lowest for that month in 11 years; it was also 0.6% in April 2007.
“Job growth, home-price appreciation, and full-doc underwriting have pushed delinquency and foreclosure rates to the lowest point in more than a decade,” says Frank Nothaft, chief economist for CoreLogic, in a statement. “The latest CoreLogic Home Price Index report revealed the annual national home price growth was 7.1 percent 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,” Nothaft adds. “Together, this heightened financial stability is pushing delinquency and foreclosure rates to record lows.”
Areas impacted from the fall hurricanes continue to recover. In April, Florida and Texas showed significant gains in 90-day delinquency rates.
“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,” says 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, Fla. The 90-day-plus delinquent or in-foreclosure rate has also quadrupled in Puerto Rico.”
