Early-Stage Delinquencies Up Slightly

CoreLogic is reporting that 5.3 percent of mortgages were in some stage of delinquency in December 2017, unchanged from one year earlier. The foreclosure inventory rate was 0.6 percent during the final month of last year, down 0.2 percentage points from 0.8 percent in December 2016; this represented the lowest December foreclosure inventory rate in 11 years and the fourth consecutive month that the rate matched its historic lowest level in June 2007.

 

The rate for early-stage delinquencies was 2.3 percent in December, up 0.1 percentage points from 2.2 percent in both November 2017 and December 2016. The share of mortgages that were 60-89 days past due in December was 0.8 percent, down from 0.9 percent in the previous month and up from 0.7 percent in the previous year. The serious delinquency rate was 2.1 percent in December, up from 2 percent in November and down from 2.3 percent in December 2016; this was the lowest serious delinquency rate was the lowest for the month of December since December 2006, when it was 1.5 percent.

 

“The wildfires in Sonoma and Napa counties began October 8 and destroyed or damaged thousands of homes. Two- and three-month delinquency rates have spiked in these two counties, more than doubling between October and December,” said Frank Nothaft, Chief Economist for CoreLogic. “The after effects of Hurricanes Harvey, Irma and Maria continue to appear as well. Serious delinquency rates in the Houston and Miami metropolitan areas doubled between September and year-end and quadrupled in the San Juan area of Puerto Rico.”

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