According to the latest Equifax National Consumer Credit Trends Report, the total balance of home finance write-offs year to date through September is $96.3 billion, representing a decrease of more than 22 percent from same time a year ago and a six-year low. Similarly, year-over-year changes in home financing total delinquencies (30-or-more days past due or in foreclosure) include:
►First mortgage: decreased 24.5 percent (from 7.94 percent to 6.00 percent);
►Home equity installment: decreased 21.9 percent (from 6.20 percent to 4.84 percent); and
►Home equity revolving: decreased 17.6 percent (from 3.24 percent to 2.67 percent).
"Improvements in labor markets and rising home values are pushing down mortgage delinquency rates and the outlook is very positive for continued improvement. We're now back to where we were in mid-2008 in terms of severely delinquent first mortgages and current trends suggest we will be at pre-recession levels of severe delinquencies by the end of 2014," said Equifax Chief Economist Amy Crews Cutts. "Generally speaking, transitions to deeper stages of delinquency are slowing, so, for example, fewer loans that are now 30 days late are transitioning to 60 days late. But we are also seeing acceleration in the transition rates from loans that have started the foreclosure process to being bank-owned in REO status. This acceleration primarily reflects reductions in judicial timelines in states where foreclosures have to go through court review."
Other highlights from the most recent Equifax data include:
First Mortgage:
►Year-over-year, first mortgage REO rates decreased 27.9 percent in September 2013 to 1.71 percent, the lowest level in more than five years;
►For the first time in more than five-years, the total balance of first mortgage severely delinquencies (90-days past due or in foreclosure) is less than $300 billion, a decrease of more than 29 percent from same time a year ago;
►Of total severely delinquent first mortgage balances, loans opened over the three-year period between 2005 and 2007 represent 64 percent of these balances.
Home Equity Revolving
►The total balance of new credit year-to-date in July 2013 is $46 billion, a four-year high.
►The total number of new loans year-to-date in July 2013 is 577,800, a year-over-year increase of 16.7 percent and a four-year high.
►In September 2013, the total balance of home equity revolving loans is $497.2 billion, a decrease of 7.3 percent from same time a year ago and a five-year low. Similarly, the total number of loans outstanding in September is less than 10.5 million, a five-year low;
►The total balance of severely delinquent home equity revolving loans in September 2013 is $8.5 billion, a decrease of more than 24 percent from same time a year ago and a five-year low;
►Of total severely delinquent home equity revolving balances, loans opened over the three-year period between 2005 and 2007 comprise 72 percent of these balances.
Home Equity Installment
►The total balance of home equity installment loans is $136.2 billion, a decrease of 3.9 percent from same time a year ago, while the total number of loans outstanding is less than 4 million, a five-year low.
►The total balance of home equity installment loans in foreclosure increased 15.5% (from $390 billion to $450 billion) month-over-month from August-September 2013.
►In that same time, the total balance of severely delinquent home equity installment loans (90 days past due or in foreclosure) declined 8.4 percent, from $4.4 billion to $4.0 billion.
