Delinquency rates declined by 0.6% year-over-year in May 2019, according to the latest CoreLogic Loan Performance Insights report. 3.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure, compared to 4.2% in May 2018. CoreLogic notes that the overall delinquency rate has fallen on a year-over-year basis for the past 17 consecutive months.
"Growth in family income and home prices continues to support low delinquency rates,” said Frank Nothaft, Chief Economist for CoreLogic. “Communities that experienced a rise in delinquencies are generally those that also suffered from natural disasters. Last year’s hurricanes and wildfires, and this spring’s severe flooding from heavy rainstorms and snowmelt have pushed delinquency rates higher in these impacted communities."
Transition rates, or the percent of mortgages moving from one stage of delinquency to the next, remained relatively unchanged in May 2019 compared to May 2018. The current-to-30-day transition rate was 0.8%.
Natural disasters proved to be a significant factor in delinquency rates for some parts of the country. According to CoreLogic’s report, 20 of the country’s metropolitan areas posted at least a small annual increase in overall delinquency, notably in areas impacted by flooding this spring in Kentucky, Ohio, Illinois and Indiana.
"While the rest of the country experienced record-low mortgage delinquency rates again in May, the Midwest and parts of the Southeast are still experiencing higher rates as they recover from extreme weather,” said Frank Martell, President and CEO of CoreLogic. “Areas in Kentucky and Ohio, which were hit particularly hard this spring with historic flooding, experienced some of the largest annual gains in the country."
By Core Based Statistical Area (CBSA), there were 11 metropolitan areas where the Serious Delinquency Rate increased, and 25 metropolitan areas where the Serious Delinquency Rate remained the same. All the remaining metropolitan areas saw the Serious Delinquency Rate decrease.