Delinquency and Foreclosure Rates Lowest in 20 Years

In January 2019, 4% of home mortgages were in some stage of delinquency, down from 4.9% a year earlier and the lowest for the month of January in at least 20 years, according to the latest CoreLogic Loan Performance Insights Report.

For the month of January historically, the share of delinquent mortgages peaked in 2010, at 12%. Since March 2018 the overall delinquency rate each month has been lower than during the pre-crisis period of 2000 through 2006, when the rate averaged 4.7%.

The serious delinquency rate (90 days or more past due) was 1.4% in January 2019, down from 2.1% in January 2018. The serious delinquency rate for January was below the average of 1.5% for the 2000 – 2006 pre-crisis period. The foreclosure inventory rate was 0.4% in January 2019, down from 0.6% a year earlier. January’s foreclosure rate was the lowest for that month in at least 20 years and was below the average pre-crisis level of 0.6%. Rising home prices have led to record amounts of home equity, reducing the risk of foreclosure.

The share of early-stage delinquency mortgages (30 to 59 days past due) was 1.9% in January 2019, down from 2% in January 2018. The share of mortgages 60 to 89 days past due was 0.7% in January 2019, down from 0.8% in January 2018.

In addition to delinquency rates, CoreLogic tracks the rate at which mortgages transition from one stage of delinquency to the next.  The report shows that in January 2019 transition rates remained well below levels during the housing crisis.

Source:  CoreLogic