Skip to main content

Delinquency Rates at 18-Year Low

Phil Hall
Jan 08, 2019
The mortgage delinquency rate rose by 3.7 percent in February from January, marking the first increase seen in the month in 12 years, according to new data from Black Knight

New data from CoreLogic has determined that 4.1 percent of mortgages were in some stage of delinquency in October 2018, the lowest level for that month in 18 years. October’s reading was one percentage point below the 5.1 percent level recorded in October 2017.
 
During October, the foreclosure inventory rate was 0.5 percent, down 0.1 percentage point from the previous year. The October foreclosure inventory rate tied with the April, May, June, July, August and September rates in 2018 as the lowest for any month since September 2006 and also marked the lowest rate for an October since 2005.
 
The rate for early-stage delinquencies was 1.9 percent in October 2018, down from 2.3 percent in October 2017. The share of mortgages that were 60 to 89 days past due was 0.7 percent, down from 0.9 percent in the previous year. The serious delinquency rate was 1.5 percent, down from 1.9 percent one year earlier. This serious delinquency rate was the lowest for an October since 2006 when it was 1.5 percent, and it tied the August and September 2018 as the lowest for any month since March 2007 when it was also 1.5 percent.
 
However, Mother Nature played a negative role in some metropolitan delinquency rates. CoreLogic found that 18 metropolitan areas posted an annual increase in overall delinquency rate in October, with seven of those markets based in the North Carolina and South Carolina path of Hurricane Florence.
 
“Despite some regional spikes related to hurricane and fire impacted areas, overall delinquency rates are near or at historic lows,” said Frank Martell, President and CEO of CoreLogic.
 
Separately, the American Bankers Association (ABA) released its Consumer Credit Delinquency Bulletin covering the third quarter. Among the housing-related delinquencies, mobile home delinquencies fell from 5.07 percent to 4.39 percent, home equity loan delinquencies rose from 2.43 percent to 2.53 percent, property improvement loan delinquencies rose from 1.07 percent to 1.14 percent and home equity lines of credit delinquencies fell from 1.15 percent to 1.14 percent. Overall, delinquencies rose in six of the 11 categories tracked by ABA while five categories showed improvement.
 
“These results are not surprising as the economy moderates following some very robust quarters of growth this past year,” said James Chessen, ABA’s Chief Economist. “The home and auto sectors have been lagging and that’s where we saw the delinquencies edge up a bit. The good news is that consumers remain confident and financially healthy amid a robust job market and rising wages.”
Separately, the American Bankers Association (ABA) released its Consumer Credit Delinquency Bulletin covering the third quarter

 
Published
Jan 08, 2019
Anchor Loans Hires Andrew Jewett As SVP, Enterprise Sales

Formerly lead lending at Sundae Inc.

Industry News
Aug 02, 2021
Pretium Adds 3 Execs With Residential Credit Expertise

New Hires Will Serve As Managing Directors

Industry News
Aug 02, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021
Gateway Mortgage Surpasses 165 Mortgage Centers With 10 New Additions

Gateway Mortgage reported significant growth in the company, prompting it to open 10 new locations across Colorado, Idaho, Oklahoma, Texas, Oregon, and Wyoming.

Industry News
Jul 30, 2021
FHFA Requires 30-Day Notice Prior To Eviction

Wednesday, the Federal Housing Finance Agency (FHFA) announced that tenants of multi-family properties must be given 30 days notice to vacate before the tenant is required to leave the premise.

Industry News
Jul 29, 2021
Houston-Based Stewart Acquires Title First Agency

Ohio-Based Agency Has 20 Offices And Operates in 32 States

Industry News
Jul 28, 2021