Mortgage delinquencies across the nation were on the way down year over year, according to the latest report from CoreLogic®.
The percentage of loans in some stage of delinquency was at 4.8%, which represents a 0.5% point decrease in the overall delinquency rate compared with April 2016 when it was 5.3%.
The foreclosure inventory rate was also on the decline with 0.7% of loans in some stage of foreclosure compared with 1% in April 2016. The mortgage serious delinquency rate, defined as 90 days or more past due including loans in foreclosure, was 2%, down from 2.6% in April 2016.
Corelogic said that loans that were 30-59 days past due, defined as the early-stage delinquencies, were on the way up to 2.2% in April 2017 from 2% in April 2016. The percentage of mortgages that were 60-89 days past due in April 2017 was 0.63%, down slightly from 0.64% in April 2016.
“Most major indicators of mortgage performance improved in April, showing that the market continues to benefit from improved economic growth and home price increases,“ said Dr. Frank Nothaft, chief economist for CoreLogic. “Regionally, with the exception of several energy industry intensive states – Alaska and North Dakota – the rest of the U.S. continues to see improvements in mortgage performance. While overall performance is improving, it reflects the older legacy pipeline of loans that continue to heal, especially in judicial states which typically take longer to clear out.“
Home loans that transitioned from current to 30-days past due were on the way up to 1.2% in April 2017 compared with 1% in April 2016, a 0.2% point increase year over year. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2% and it peaked in November 2008 at 2%.
“Delinquency rates are down virtually across the board as the rebound in the U.S. housing market continues to gather steam. It appears likely that delinquency rates will continue to fall for some time, but at a moderating pace,“ said Frank Martell, president and CEO of CoreLogic. “As we look forward, improved fundamentals provide us with a firm foundation and we must now increase our attention to carefully expand the supply of affordable housing stock and ensure that mortgage lending policies help to prudently promote first-time homeownership.“