CoreLogic’s Loan Performance Insights Report reveals that overall mortgage delinquencies for October 2017 were down 0.1 percentage points to 5.1% compared to a year earlier.
Loans in early-stage delinquency (30-59 days) increased by 0.1 percentage points year-over-year to 2.3%. But the rate was down 0.1 percentage points from the previous month’s rise.
“The temporary rise in September’s early-stage delinquencies reflected the impact of the hurricanes in Texas, Florida and Puerto Rico, but now the impact from the hurricanes is fading from a national perspective,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While the national impact is waning, the local impact remains.”
Nothaft noted that there were increases to an average 5% in Florida markets including Miami, Orlando, Tampa, Naples and Cape Coral.
Cost of hurricanes will last many years
CoreLogic president and CEO Frank Martell added that the human cost of the hurricanes will continue for years to come, highlighting that the impact of Hurricane Katrina is still evident in New Orleans today.
“The reconstruction of the housing stock and infrastructure impacted by the storms should provide a small stimulus to local economies. This rebuilding will occur against a backdrop of wage growth, consumer confidence and spending in the national economy which should continue to provide a solid foundation for real estate demand in the storm-impacted areas and beyond.”
Foreclosure inventory remains at 10-year low
The national foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.%, down 0.2 percentage points from October 2016. The rate has remained steady since August and is the lowest level since June 2007 when it was also at 0.6%.
More market update:
Early-stage mortgage delinquencies increased due to the impact of 2017’s hurricane season.