Mortgage delinquencies of 30 days or more, or in early stage delinquency, are at their lowest level in 10 years, according to CoreLogic’s new Loan Performance Insights Report—a key check of the health of the housing market and the overall economy. Approximately 5 percent of mortgages, including those in foreclosure, were 30 days or more delinquent in January 2017, 1.1 percentage point less year-over-year.
“The 30-plus delinquency rate, the most comprehensive measure of mortgage performance, is at a 10-year low and rapidly declining,” said Frank Martell, president and CEO of CoreLogic, in a statement on the report. “While late-stage delinquencies remain in the pipeline in selected markets, early-stage delinquency performance is stellar and the lowest it’s been in two decades. The continued improvement in mortgage performance bodes well for the health of the market in 2017.”
Mortgages that are 90 days or more delinquent are following the trend, at a rate of 2.5 percent in January, down from 3.2 percent the year prior.
Less than 1 percent of mortgages transitioned to the early stage of delinquency in January, according to the report. The transition rate was 1.2 percent in January 2007, and topped out at 2 percent in November 2008.
“Steady job and income growth, combined with full-doc underwriting, has led to low early-stage delinquencies,” said Dr. Frank Nothaft, chief economist for CoreLogic. “January’s 0.9 percent transition rate for current to 30 days late is lower than a year ago and much lower than the 1.5 percent average from 2000 and 2001, during which the foreclosure rate was, conversely, lower than it is today.”
Source: CoreLogic
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