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Overall U.S. Delinquency, Foreclosure Rates Lowest in Two Decades
Irvine, CA-based CoreLogic’s monthly Loan Performance Insights Report shows 4% of mortgages were in some stage of delinquency nationally in January 2019. That represents a 0.9 percentage point decline in the overall delinquency rate compared with January 2018, when it was 4.9%. The latest figure was the lowest for the month of January in at least 20 years.
CoreLogic’s Dr. Frank Nothaft says, “Income growth, home appreciation and sound underwriting combined have pushed delinquency rates to their lowest level in 20 years.” Yet, the economist points out the low delinquency rates on home mortgages stand in stark contrast to the rising delinquency rates on consumer credit. Delinquency rates for auto and student loans are higher now than they were during the early and mid-2000s, notes Nothaft.
CoreLogic defines delinquency as loans 30 days or more past due, including those in foreclosure. Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market.
The foreclosure inventory rate in January – which measures the share of mortgages in some stage of the foreclosure process – was 0.4%, down 0.2 percentage points from January 2018.
– The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.9% in January 2019, down from 2% in January 2018. The share of mortgages 60 to 89 days past due in January 2019 was 0.7%, down from 0.8% in January 2018.
– The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.4% in January 2019, down from 2.1% in January 2018.
– The serious delinquency rate of 1.4% this January was the lowest for that month since 2001 when it was also 1.4%, and was the lowest for any month since September 2006 when it was also 1.4%.
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