In April, delinquencies fell to 3.6 percent of mortgages nationwide, down from 4.3 percent the prior year, and their lowest in more than 20 years, according to CoreLogic’s Loan Performance Insights Report, recently released.
CoreLogic defines delinquency as 30 or more days past due. In April, 1.7 percent of loans moved to 30-59 days past due; 0.6 percent moved to 60-89 days past due; and 1.3 percent moved to 90 or more days past due—all downshifting or flat year-over-year. The foreclosure inventory rate was 0.4 percent, also a decline.
“Thanks to a 50-year low in unemployment, rising home prices and responsible underwriting, the U.S. overall delinquency rate is the lowest in more than 20 years,” says Dr. Frank Nothaft, chief economist at CoreLogic.
There are deviations, however. In April, 10 areas had increases in loans 90 or more days past due, concentrated in Northern California and the Southeast, which were impacted by storms and wildfires.
“A number of metros that suffered a natural disaster or economic decline contradict [the] national trend,” Nothaft says. “For example, in the wake of the 2018 California Camp Fire, the serious delinquency rate in the Chico, Calif., metro area this April was 21 percent higher than one year ago.”
The Midwest could see similar trends, as well, after catastrophic flooding this year.
“The U.S. has experienced 16 consecutive months of falling overall delinquency rates, but it has not been a steady decline across all areas of the country,” says Frank Martell, president and CEO of CoreLogic. “Recent flooding in the Midwest could elevate delinquency rates in hard-hit areas, similar to what we see after a hurricane.”
For more information, please visit www.corelogic.com.