Overall Delinquency Rate Dropped Again in June But Serious Delinquencies Stubbornly High


The U.S. mortgage delinquency rate fell to 4.4% in June, the lowest in more than two decades and down significantly from 7.1% in June 2020, according to CoreLogic.

It was the 10th consecutive month that the overall mortgage delinquency rate dropped, as U.S. homeowners remained resilient in the face of the pandemic.

Early-stage delinquencies (loans 30 to 59 days past due) represented only about 1.1% of all loans, down from 1.8% in June 2020.

Loans that were 60 to 89 days past due represented  0.3%, down from 1.8% in June 2020.

Serious delinquencies (90 days or more past due, including loans in foreclosure) represented  3% of all loans, down from 3.4% a year ago. Although the overall delinquency rate is down, serious delinquencies remain elevated. 

As of the end of June, the foreclosure inventory rate (the share of mortgages in some stage of the foreclosure process) stood at 0.2% of all loans, down from 0.3% in June 2020.

It was the lowest foreclosure rate recorded since CoreLogic began recording data in 1999.

CoreLogic notes that in June, the federal foreclosure moratorium was extended through July 31 to provide homeowners additional time to get financially back on track. As a result, the reading for June is artificially low.

“The downward trend in delinquencies, especially serious cases, is very encouraging — and a testimony to the impact of the significant economic rebound over the past six months, as well as government stimuli, record-low mortgage rates and loan modification options,” says Frank Martell, president and CEO of CoreLogic, in a statement. “Providing resources to homeowners experiencing distress to help educate them on available government and private-sector support will aide in shrinking delinquency and foreclosure rates even more over the remainder of this year.”

However, Frank Nothaft, chief economist at CoreLogic, points out that despite the economic rebound, “many families … remain in financial distress.”

“More than one million borrowers had missed six or more payments as of June, triple the number of borrowers pre-pandemic,” Nothaft notes. “CoreLogic analysis found that as of June 2021, borrowers in forbearance and behind on mortgage payments had missed an average of 10 monthly payments.”

Photo: Pierre Bamin

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