CoreLogic reported that mortgage delinquencies have fallen to their lowest level in 20 years.
“In April 2019, 3.6% of home mortgages were in some stage of delinquency, down from 4.3% a year earlier and the lowest for any month in more than 20 years, according to the latest CoreLogic Loan Performance Insights Report. The measure, also known as the overall delinquency rate, includes all home loans 30 days or more past due, including those in foreclosure. For the month of April historically, the share of delinquent mortgages peaked in 2010 at 11%. Since March 2018 the overall delinquency rate each month has been lower than during the pre-crisis period of 2000 through 2006, when the rate averaged 4.7%.
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. The serious delinquency rate for April was below the average of 1.5% for the 2000 – 2006 pre-crisis period. The foreclosure inventory rate – meaning the share of mortgages in some stage of the foreclosure process – was 0.4% in April 2019, down from 0.5% a year earlier. April’s foreclosure rate was the lowest for that month in at least 20 years and was below the average pre-crisis level of 0.6%. Rising home prices have led to record amounts of home equity, reducing the risk of foreclosure.
The share of mortgages that were 30 to 59 days past due – considered early-stage delinquencies – was 1.7% in April 2019, down from 1.8% in April 2018. The share of mortgages 60 to 89 days past due was 0.6% in April 2019, unchanged from April 2018.”