July 10, 2019 Comments (0) Views: 417 California News, Top California

Delinquency Rate Drops to Lowest Level in More Than 20 Years

The latest research by CoreLogic shows 3.6% of mortgages nationally were in some stage of delinquency, 30 days or more past due, including those in foreclosure, in April 2019. This represents a 0.7 percentage point decline in the overall delinquency rate compared with April 2018, when it was 4.3%. This is the lowest rate for any month in more than 20 years.

The nation’s overall delinquency rate has fallen on a year-over-year basis for the past 16 consecutive months. Except for Nebraska, all states posted at least a small annual decline in overall delinquency rates in April.

As of April 2019, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.4%, down 0.1 percentage points from April 2018. The April 2019 foreclosure inventory rate tied the prior five months as the lowest for any month since at least January 1999.

Dr. Frank Nothaft, chief economist at CoreLogic, says “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. However, a number of metros that suffered a natural disaster or economic decline contradict this national trend.”

In April 2019, 10 metropolitan areas logged an increase in the serious delinquency rate. The highest gains continue to plague the hurricane-ravaged parts of the Southeast, such as in Florida, Georgia and North Carolina, and in Northern California where the Camp Fire devastated communities in 2018.

Details of the report include:
– The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.7% in April 2019, down from 1.8% in April 2018.
– The share of mortgages 60 to 89 days past due in April 2019 was 0.6%, unchanged from April 2018.
– The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.3% in April 2019, down from 1.9% in April 2018.
– April’s serious delinquency rate of 1.3% was the lowest for any month since August 2005 when it was also 1.3%.

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Read more at CoreLogic Report

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