A new report by CoreLogic® shows that the U.S. mortgage delinquency rate in March 2017 was the lowest level in 10 years.
Corelogic said that 4.4% of home loans were in some stage of delinquency (30 days or more past due including those in foreclosure) for the month of March, which represents a 0.8 percentage point decrease in the overall delinquency rate compared with March 2016 when it was 5.2%.
Foreclosure rates for mortgages in some stage of the foreclosure process was 0.8% compared with 1% in March 2016.
Loans in serious delinquency, defined as 90 days or more past due, was 2.1%, down from 2.7% in March 2016.
Home loans that were 30-59 days past due (early-stage delinquencies), dropped to 1.7% for the month, a decrease from 1.9% in March 2016 and the lowest level since January 2000. The share of mortgages that were 60-89 days past due in March 2017 was 0.59%, down slightly from 0.63% in March 2016.
“Early-stage mortgage performance continues to improve at a steady pace, especially for 30-59-day delinquencies which fell to 1.7 percent, the lowest rate for any month since January 2000,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Late-stage serious delinquency rates continue to decline, falling to their lowest levels since November 2007.”
CoreLogic defines early-stage delinquency rates as volatile. Loans that moved from current to 30-days past due was 0.6% in March 2017, down from 0.7% in March 2016 and the lowest for any month since January 2000. 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%.
“Dropping delinquency and foreclosure rates reflect the beneficial impact of stringent post-crisis underwriting standards as well as better fundamentals such as higher employment, household formation and home price gains,” said Frank Martell, president and CEO of CoreLogic. “Looking ahead, we expect these positive trends to continue as the industry shifts its focus toward solving supply shortages and looming affordability crises in an increasing number of markets.”