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.”