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Early-Stage Mortgage Delinquency Falls to Lowest Since 2000

mortgage-payment-dueMortgage delinquency rates were down in the month March, according to CoreLogic, a global property information, analytics, and data-enabled solutions provider. In their monthly Loan Performance Insights Report, nationally March showed 4.4 percent of mortgages in some stage of delinquency, meaning 30 or more days past due, including foreclosure. This is an overall 0.8 percentage point decline compared to 2016’s March numbers when overall delinquency rates were 5.2 percent

Similar to the delinquency rate, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process was 0.8 percent compared to March 2016 when it was 1 percent. Down from March 2016’s 2.7 percent, mortgages 90 days or more past due, known as the serious delinquency rate, was 2.1 percent, the lowest level since November 2007.

“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.”

On the opposite end of the spectrum, early-stage delinquencies, or 30-59 days past due, fell to 1.7 percent in March 2017, down from March 2016’s 1.9 percent. According to CoreLogic Chief Economist Dr. Frank Nothaft, this is the lowest rate for early-stage mortgages of any month since January 2000.

Mortgages that were 60-89 days past due in March 2017 was 0.59 percent, a hair down from 0.63 percent in March 2016.

CoreLogic analyzes transition rates due to the volatile nature of early-stage delinquencies. They found that the share of transitioned mortgages from current to 30-days past due was 0.6 percent in March 2017, only a 0.1 percent decline from March 2016—lowest for any month since January 2000. For comparison, in January 2007 before in the financial crisis, the current-to-30-day transition rate was 1.2 percent peaking in November 2008 at 2 percent.

About Author: Brianna Gilpin

Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation's leading diversified media and information services companies. To contact Gilpin, email [email protected].
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