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Tracking Delinquency Shifts

This week, CoreLogic will release its newest Loan Performance Insights report. The last report, covering July data, revealed that while delinquencies were falling across the nation, four states were defying trends. These states posted annual increases in their overall delinquency rate in July: Vermont (+0.5%); New Hampshire (+0.2%); Minnesota (+0.1%); and Iowa (+0.1%).

3.8% of home mortgages nationally were in some stage of delinquencies that month—down from 4.1% last July and the lowest July figure in more than 20 years. Historically, the share of delinquent mortgages in July peaked in 2010 at 11.1%. The overall delinquency rate since March 2018 for each month has been lower than during the pre-crisis period of 2000 through 2006, when the rate average 4.7%.

The serious delinquency rate, which is defined as 90 days or more past due, including loans in foreclosure, was 1.3% in July. That is down year-over-year from 1.6%, and was also lower than the 1.5% average from the pre-crisis period of 2000-2006.

The foreclosure inventory rate—the share of mortgages in some stage of the foreclosure process—was 0.4% in July, which is down from July 2018’s 0.5%. CoreLogic states that rising home prices have led to record amounts of home equity, reducing the risk of foreclosure.

Also seeing a decline was the share of mortgages entering delinquency, with just 0.8% of mortgages no more than 30 days delinquent. The 30-to-60 day transition rate fell from 15.1% in July 2018 to 13.8% in July 2019.

Mortgages delinquent 60-to-90 days fell from 25.3% to 24%. Mississippi led the nation with the highest share of mortgages 30 days or more delinquent at 7.3%. Colorado had the lowest rate at 1.7%.

Here's what else is happening in The Week Ahead:

New York Fed Household Debt and Credit Report (November 13)
Jerome Powell Testimony: The Economic Outlook (November 13)
U.S. Federal Budget (November 13)

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.
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