Delinquency Rates at 18-Year Low – NMP 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
FirstClose Receives $35M Investment From Lateral

Fintech says it will use the investment to expand its growing financial services footprint.

Industry News
May 18, 2022
Mortgage News Network Launches Podcast On Helping Underserved Borrowers

'Gated Communities' looks at why homeownership gap is increasing, and what lenders are doing to reverse the trend.

Industry News
May 17, 2022
Class Valuation Appoints EVP Of Valuation Modernization

Cristy Conolly will focus on removing bias from the equation in appraisals.

Industry News
May 17, 2022
Open Mortgage Appoints New Chief Financial Officer

Anthony Nolte, Open Mortgage's CFO since 2019, will transition to chief legal officer.

Industry News
May 17, 2022
Online Brokerage REX Pursues Litigation Against Zillow & NAR

The legal battle between REX Home Loans (Real Estate Exchange, Inc.) and NAR continues to heat up, even though REX is reported to have shut down operations.

Industry News
May 16, 2022
Fannie Mae Seeks Innovative Housing Ideas

Sustainable Communities Innovation Challenge seeks ideas to advance racial equity in housing, focusing on addressing supply, funding and credit barriers.

Industry News
May 16, 2022