CoreLogic: Mortgage Delinquencies at 10-Year Low

CoreLogic, Irvine, Calif., said March mortgage delinquencies fell to the lowest rate in 10 years.

The company’s monthly Loan Performance Insights Report said early-stage delinquencies, (30-59 days past due) fell to 1.7 percent in March, down from 1.9 percent a year ago and the lowest level since January 2000. The share of mortgages 60-89 days past due in March fell to 0.59 percent, down slightly from 0.63 percent a year ago. March delinquency rates fell by 0.8 percent from a year ago (5.2 percent).

CoreLogic said the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.8 percent compared to 1 percent a year ago. The serious delinquency rate, defined as 90 days or more past due including loans in foreclosure, fell to 2.1 percent, down from 2.7 percent a year ago.

The share of mortgages that transitioned from current to 30-days past due was 0.6 percent in March 2017, down from 0.7 percent in March 2016 and the lowest for any month since January 2000. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent.

“Dropping delinquency and foreclosure rates reflect the beneficial impact of stringent post-crisis underwriting standards as well as better fundamentals such as higher employment, household formation and home price gains,” said CoreLogic President and CEO Frank Martell. “Looking ahead, we expect these positive trends to continue as the industry shifts its focus toward solving supply shortages and looming affordability crises in an increasing number of markets.”