CoreLogic: Delinquency, Foreclosure Rates Lowest for November Since 2000
CoreLogic, Irvine, Calif., said 4.1 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in November, down by 1.1 percentage point from a year ago, when it was 5.2 percent.
The company’s monthly Loan Performance Insights Report also noted the foreclosure inventory rate fell to 0.4 percent, down 0.2 percentage points from a year ago. The November foreclosure inventory rate was the lowest for any month since at least January 2000.
The report comes ahead of the Mortgage Bankers Association’s 4th Quarter National Delinquency Survey, which comes out this Friday, Feb. 15.
The rate for early-stage delinquencies (30-59 days past due) fell to 2 percent in November, down from 2.2 percent a year ago. The share of mortgages 60-89 days past due in November 2018 was 0.7 percent, down from 0.9 percent in November 2017. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.5 percent in November 2018, down from 2 percent in November 2017. November 2018 marked the lowest serious delinquency rate for the month since 2006 when it was also 1.5 percent. It ties with August, September and October 2018 as the lowest for any month since March 2007 when it was also 1.5 percent.
The report said the share of mortgages that transitioned from current to 30 days past due dropped slightly to 0.9 percent in November, down from 1 percent a year ago. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent, while it peaked in November 2008 at 2 percent.
“Solid income growth, a record amount of home equity and an absence of high-risk loan products put the U.S. homeowner on solid ground,” said CoreLogic Chief Economist Frank Nothaft. “All of this has helped push delinquency and foreclosure rates to the lowest levels in almost two decades, and will provide a cushion if the housing market should turn down.”
CoreLogic reported the nation’s overall delinquency rate has fallen on a year-over-year basis for the past 11 consecutive months, but noted loan vulnerability in several metropolitan areas in North Carolina, which are still struggling from Hurricane Florence. In November, seven metropolitan areas logged an increase in their serious delinquency rates, with the largest gains occurring in the Wilmington and New Bern metropolitan areas.
“On a national basis, we continue to see strong loan performance,” said Frank Martell, president and CEO of CoreLogic. “Areas that were impacted by hurricanes or wildfires in 2018 are now seeing relatively large annual gains in the share of mortgages moving into 30-day delinquency. As with previous disasters, this is to be expected and we will see the impacts dissipate over time.”
