According to a recent report, delinquency and foreclosure have recorded a decline. CoreLogic's monthly Loan Performance Insights Report  revealed that as of November 2018, 4.1 percent of mortgages were in some stage of delinquency, a 1.1 percentage point decline in the overall delinquency rate compared with November 2017, when it was 5.2 percent.
Meanwhile, the foreclosure rate was 0.4 percent, down 0.2 percentage points from November 2017. The transition rate or share of mortgages that transitioned from current to 30 days past due fell as well, down by one percent to 0.9 percent year over year as of November 2018.
The rate for early-stage delinquencies, loans 30 to 59 days past due, was two percent in November 2018, down from 2.2 percent in November 2017. The share of mortgages that were 60 to 89 days past due in November 2018 was 0.7 percent, down from 0.9 percent in November 2017.
“Solid income growth, a record amount of home equity and an absence of high-risk loan products put the U.S. homeowner on solid ground,” said Dr. Frank Nothaft, Chief Economist at CoreLogic. “All of this has helped push delinquency and foreclosure rates to the lowest levels in almost two decades, and will provide a cushion if the housing market should turn down.”
Nothaft notes that while the overall delinquency rate has fallen on a year-over-year basis for the past 11 consecutive months, some areas are still struggling to recover following recent natural disasters. Several metropolitan areas in North Carolina are still struggling from Hurricane Florence, with seven metropolitan areas experiencing an increase in their serious delinquency rates, with the largest gains occurring in the Wilmington and New Bern metropolitan areas.
“On a national basis, we continue to see strong loan performance,” said Frank Martell, President and CEO of CoreLogic. “Areas that were impacted by hurricanes or wildfires in 2018 are now seeing relatively large annual gains in the share of mortgages moving into 30-day delinquency. As with previous disasters, this is to be expected and we will see the impacts dissipate over time.”
Read the full report here.