The overall US mortgage delinquency rate fell to 4.1% in July 2018, down from 4.7% a year earlier.
The foreclosure inventory – the share of all mortgages in some stage of the foreclosure process – was down to 0.5% from 0.7% a year earlier and the lowest rate for any July since 2006.
The data from CoreLogic shows that early-stage delinquencies – 30 to 59 days past due – was 1.9%, down from 2.1% a year earlier; and those 60-89 days past due fell to 0.6% from 0.7%.
Serious delinquencies – 90+ days past due including those in foreclosure – fell to 1.6% from 1.9% a year earlier, the lowest rate for a July since 2006.
Transition rates – the share of mortgages moving from current to 30 days past due – was 0.8% in July 2018 from 0.9% a year earlier.
With the national unemployment rate remaining below 4% since July, further declines in US delinquency rates are likely in coming months,” said Dr. Frank Nothaft, chief economist for CoreLogic.
Hurricane impact now – and to come
The exception to declining rates will be in local areas impacted by natural hazards or a rise in unemployment.
“Despite an overall sunny picture of delinquencies, weather-driven hotspots dot the country. We expect higher delinquency rates in the mid-Atlantic region later this year due to Hurricane Florence, which impacted nearly half a million homes in North Carolina alone. We also see increases in serious delinquency rates in Florida and Texas reflecting the damage of Hurricanes Harvey and Irma,” said Frank Martell, president and CEO of CoreLogic. “In addition, Hawaii will likely experience an increase in delinquency rates as a result of Hurricane Lane and the eruption of Kilauea.”
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