Mortgage delinquencies fell by 0.9 percent year over year, according to the latest Loan Performance Insights Report from CoreLogic. By measuring delinquency as well as transition rates across all stages, CoreLogic’s report indicates the overall strength of the housing market.
Employment increased by 196,000 in March, according to the most recent U.S. Bureau of Labor Statistics Employment Situation Summary, which Frank Nothaft, CoreLogic Chief Economist cites as one reason for the increased loan performance.
"Income growth, home appreciation and sound underwriting combined have pushed delinquency rates to their lowest level in 20 years,” said Frank Nothaft, CoreLogic Chief Economist. “The low delinquency rates on home mortgages are a contrast to the rising delinquency rates on consumer credit. While home mortgage delinquency rates are at, or are near, their lowest levels in two decades, delinquency rates for auto and student loans are higher now than they were during the early and mid-2000s."
According to the Report, the overall delinquency rate has fallen on a year-over-year basis for the past 13 consecutive months, although, the largest gains in delinquencies were seen in areas affected by natural disasters, notably the Southeast. CoreLogic notes that five Southeastern metroes impacted by natural disasters also saw the biggest gains in delinquencies, including Panama City, Florida; Albany Georgia, and three North Carolina metroes: Jacksonville, Wilmington, and New Bern.
Still, overall delinquency rates have been declining. The foreclosure inventory fell by 0.2 percent year over year as of January 2019, down to 0.4 percent.
"As the economic expansion continues to create jobs and low mortgage rates support home buying this spring, delinquency rates are likely to trend lower during the coming year,” said Frank Martell, President and CEO of CoreLogic. “The decline in delinquency rates has occurred in nearly all parts of the nation."
Serious delinquency, or 90 days or more past due including loans in foreclosure, fell nationwide, except in one state: North Dakota, which remained unchanged. By metro, 13 areas saw increases in serious delinquency, while 14 remained the same and all remaining metro areas decreased.
Find more from the report here.