Mortgage delinquency rate dips in July

The serious delinquency rate continues near a 10-year low – but there are worrying trends in some areas

Mortgage delinquency rate dips in July
The number of mortgages that were in some stage of delinquency declined in July from the year-ago period, according to the Loan Performance Insights Report released by CoreLogic.

Mortgages that were 30 days or more past due, including those in foreclosure, accounted for 4.6% of all mortgages, down from the 5.5% rate in July 2016. The foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.7% as of July, a decrease from 0.9% rate in the year-ago period.

Delinquencies in the early stage, or those 30 to 59 days past due, were at a rate of 2% during the month, declining slightly from 2.3% in July. Mortgages that were 60 to 89 days past due made up 0.7%, unchanged from the year-ago level. Meanwhile, mortgages that were seriously delinquent, or 90 days or more past due, accounted for 1.9% in July, down from 2.5% in July 2016. The latest figure remains near the 10-year low of 1.7% recorded in July 2007.

“While the US foreclosure rate remains at a 10-year low as of July, the rate across the 100 largest metro areas varies from 0.1% in Denver to 2.2% in New York,” CoreLogic Chief Economist Frank Nothaft said. “Likewise, the national serious delinquency rate remains at 1.9%, unchanged from June, and when analyzed across the 100 largest metros, rates vary from 0.6% in Denver to 4.1% in New York.”

The CoreLogic report also showed that mortgages that transitioned from current to 30-days past due accounted for 0.9% of all mortgages in July, down from 1.1% in July 2016.

“Even though delinquency rates are lower in most markets compared with a year ago, there are some worrying trends,” CoreLogic CEO and President Frank Martell said. “For example, markets affected by the decline in oil production or anemic job creation have seen an increase in defaults. We see this in markets such as Anchorage, Baton Rouge and Lafayette, Louisiana, where the serious delinquency rate rose over the last year.”

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