The most recent monthly Loan Performance Insights Report from CoreLogic shows that, nationally, 4.8% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in April 2017. This figure represents a 0.5 percentage-point decline in the overall delinquency rate compared with April 2016, when it was 5.3%.
As of April 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.7%, compared with 1% in April 2016. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2%, down from 2.6% in April 2016.
Early-stage delinquencies, defined as 30-59 days past due, increased to 2.2% in April 2017 from 2% in April 2016. The share of mortgages that were 60-89 days past due in April 2017 was 0.63%, down slightly from 0.64% in April 2016.
“Most major indicators of mortgage performance improved in April, showing that the market continues to benefit from improved economic growth and home price increases,” says Dr. Frank Nothaft, chief economist for CoreLogic.
“Regionally, with the exception of several energy-industry-intensive states – Alaska and North Dakota – the rest of the U.S. continues to see improvements in mortgage performance,” he adds. “While overall performance is improving, it reflects the older legacy pipeline of loans that continue to heal, especially in judicial states, which typically take longer to clear out.”
The share of mortgages that transitioned from current to 30 days past due was 1.2% in April 2017, compared with 1% in April 2016: a 0.2 percentage-point increase year over year. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2%, and it peaked in November 2008 at 2%.
“Delinquency rates are down virtually across the board as the rebound in the U.S. housing market continues to gather steam,” notes Frank Martell, president and CEO of CoreLogic. “It appears likely that delinquency rates will continue to fall for some time, but at a moderating pace.”