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CoreLogic's latest Loan Performance Insights report for January 2021 revealed that US mortgage delinquency rates are down for the fifth consecutive month, to the lowest since the start of the COVID-19 pandemic. According to the report, in January 2021 5.6% of all mortgages in the U.S. were in some stage of delinquency.
“While delinquency rates are higher than we would like to see, they continue to decline,” said Frank Martell, president and CEO of CoreLogic. “At the same time, foreclosure rates remain at historic lows. This is a good sign, and considering the improving picture regarding the pandemic and climbing employment rates, we are looking at the potential for a strong year of recovery.”
The company also noted that on a national level, mortgage delinquency has been declining month-to-month since August 2020. Despite mortgage delinquency rates falling, the report still states that there are millions of homeowners who are in forbearance plans, that were originally scheduled to expire in March 2021. That time frame has been extended by the Federal Housing Finance Agency for Government-Sponsored Enterprises.
“The transition rate from current to delinquent this January was the lowest in twelve months, which is another hopeful sign that family finances are beginning to improve,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Further, the transition from 30- to 60-day delinquency was the lowest since last March and is likely to decline further with strong job growth. The consensus view among economists is that the 2021 economy will expand at the fastest rate since 1984.”
Click here to read more from the CoreLogic report.