Mortgage Delinquency Rates Hit Twenty-Year Low

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In its monthly “Loan Performance Insights Report,” CoreLogic reveals that mortgage delinquency rates were lower in April 2019 than they have been in twenty years, with no state reporting a year-over-year gain in delinquency rates. According to the report, “nationally 3.6% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in April 2019, representing a 0.7 percentage point decline in the overall delinquency rate compared with April 2018, when it was 4.3%.”

Foreclosure rates came in at 0.4%, down 0.1% from April 2018, which “tied the prior five months as the lowest for any month since at least January 1999.” In all, mortgage delinquency rates have declined for sixteen consecutive months.

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As Dr. Frank Nothaft, chief economist at CoreLogic, said in a statement, “Thanks to a 50-year low in unemployment, rising home prices and responsible underwriting, the U.S. overall delinquency rate is the lowest in more than 20 years. However, a number of metros that suffered a natural disaster or economic decline contradict this national trend. For example, in the wake of the 2018 California Camp Fire, the serious delinquency rate in the Chico, California metro area this April was 21% higher than one year ago.”

The midwest likely underwent higher delinquency rates in areas with high flooding.

For more, read the full report here.