The overall delinquency rate in March 2020 was 3.6%, which is a slight decline of 0.4% from March, according to CoreLogic’s Loan Performance Insights Report.
“The first three months of 2020 reflected one of the strongest quarters for U.S. mortgage performance in recent history. The build-up in home equity over the past several years, government stimulus programs, and lower borrowing costs have helped cushion homeowners from the initial financial shock of the pandemic and kept widespread delinquencies at bay during the first months of the recession,” said Frank Martell, President and CEO, CoreLogic. “Looking ahead, we can expect a more widespread impact on U.S. delinquency rates as the economic toll of elevated unemployment and shelter-in-place orders becomes more evident.”
Early-stage delinquencies—those categorized by 30 days or fewer—was 1.9% for March. The delinquency rate for mortgages more than 60 days past due was 0.6% and serious delinquency—those more than 90 days past due—was 1.2%.
March was also the third consecutive month that the serious delinquency rate has been at its lowest level since June 2000.
March’s foreclosure inventory rate was 0.4%—unchanged from March 2019. Also, the month’s foreclosure inventory rate tied the prior 16 months as the lowest for any month since January 1999.
The Transition from 30-to-60 days past due and 60-to-90 days past due did rise annually. In March 2019, homeowners moving from 30-to-60 past due was 13.4%. This rose to 15.3% in March 2020.
The transition rate from 60-to-90 days past due in March 2019 was 26.8%, which is an increase from last year’s 22.4%.
While every state reported a decline in serious delinquency rates, just four cities posted increases. Of the 10 largest cities studied, the metro of New York-Newark-Jersey City had a serious delinquency rate of 2.2%. This is followed by Miami-Fort Lauderdale-West Palm Beach’s 1.7%.
San Francisco-Oakland-Hayward had the smallest delinquency rate among the largest metros studied, coming in at 0.3%.