from CoreLogic
— this post authored by MOLLY BOESEL
In January 2018, 4.9 percent of home mortgages were in some stage of delinquency, down from 5.1 percent a year earlier and the lowest for any January since 2007, when it was 4.5 percent, according to the latest CoreLogic Loan Performance Insights Report.
The measure includes all home loans 30 days or more past due, including those in foreclosure. For the month of January, the share of delinquent mortgages was highest – 12 percent – in January 2010.
The foreclosure inventory rate, meaning the share of mortgages in some stage of the foreclosure process, was 0.6 percent in January 2018, down from 0.8 percent a year earlier. The foreclosure rate is back to the pre-crisis (average of 2000 to 2006) level of 0.6 percent.
The share of mortgages that were 30 to 59 days past due – considered “early-stage” delinquencies – was 2 percent in January 2018, down from 2.1 percent in January 2017. The share of mortgages 60 to 89 days past due was 0.8 percent in January 2018, up from 0.7 percent in January 2017. The decrease in early-stage delinquencies reflects the fading impact of the 2017 hurricanes and wildfires.
In addition to delinquency rates, CoreLogic tracks the rate at which mortgages transition from one stage of delinquency to the next, such as going from being current to 30 days past due. Figure 1 shows that the current- to 30-day transition rate remained well below housing crisis levels in January. The rate had increased in recent months, mainly due to the hurricanes. The January 2018 current- to 30-day rate was 0.8 percent, down from 0.9 percent in January 2017. The 30- to 60-day transition rate was 14 percent in January 2018, down from 15.3 percent in January 2017, while the 60- to 90-day transition rate was 26.5 percent this January, down from 26.8 percent from a year earlier.
Figure 2 shows the states with the highest and lowest rate of mortgages in some stage of delinquency. In January 2018 that rate was highest in Mississippi – 8.8 percent – and lowest in Colorado at 2 percent. Florida had the second-highest delinquency rate of any state at 8.4 percent. The delinquency rate in Florida increased by 2.4 percentage points from a year earlier due to effects from the late summer 2017 hurricanes. While Texas was not among the top five states with the highest overall delinquency rate, its rate rose from 5.6 percent in January 2017 to 6.3 percent in January 2018.
Figure 3 shows the 30-plus-day past-due rate for the 10 largest metro areas [1]. That rate was highest – 10.6 percent – in the Miami metro area and lowest – 1.6 percent – in San Francisco. Both Miami and Houston saw large increases in delinquency rates from a year ago as a result of the hurricanes. The delinquency rate in Miami rose from 7.1 percent in January 2017 to 10.6 percent in January 2018, and the delinquency rate in Houston rose from 5.9 percent in January 2017 to 9.1 percent in January 2018.
[1] Metro areas used in this report are the ten most populous Core Based Statistical Areas.© 2018 CoreLogic, Inc. All rights reserved.
Source
https://www.corelogic.com/blog/2018/04/loan-performance-insights-report-highlights-january-2018.aspx
