Delinquency Drops Below March 2020 Level for First Time Since Onset of PandemicBy RISMedia Staff
Another good indicator of a strong economy, was revealed in CoreLogic’s monthly Loan Performance Insights Report for November 2021.
In November, 3.6% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 2.3-percentage point decrease compared to November 2020, when it was 5.9%. This suggests mortgage performance is following the nation’s income growth. Key findings: · Early-Stage Delinquencies (30 to 59 days past due): 1.2%, down from 1.4% in November 2020 · Adverse Delinquency (60 to 89 days past due): 0.3%, down from 0.6% in November 2020 · Serious Delinquency (90 days or more past due, including loans in foreclosure): 2%, down from 3.9% in November 2020 and a high of 4.3% in August 2020 · Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.2%, down from 0.3% in November 2020. This remains the lowest foreclosure rate recorded since 1999 · Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.8% in November 2020 The takeaway: In addition to low delinquency rates, foreclosure rates also remain at historic lows as borrowers have been able to quickly pile on equity during a year of record-breaking home price growth. These factors have helped offset some of the difficult economic impacts of the ongoing pandemic. “Nonfarm employment rose 6.45 million during 2021, helping to rebuild income for families under financial stress during the pandemic,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Income growth has helped to reduce past-due rates and home equity build-up has reduced the likelihood of a distressed sale for families that experience financial challenges.” Regional highlights:
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