It has been more than a decade since the monthly rate of mortgage delinquency was as low as it is now. The foreclosure rate hasn’t risen in seven months.
Delinquency of at least 30 days on residential loans, including loans that are in foreclosure, was 4.3 percent as of March 31, according to CoreLogic Inc.
Historical data previously provided to Mortgage Daily from CoreLogic indicate that the last time the rate was this low was in May 2006, when it was also 4.3 percent.
“Unemployment and lack of home equity are two factors that can lead to borrowers defaulting on their mortgages,” CoreLogic Chief Economist Dr. Frank Nothaft stated in the report. “Unemployment is at the lowest level in 18 years, and for the first quarter, the CoreLogic Equity Report revealed record levels of home equity growth with equity per owner up $16,300 on average for the year ending March 2018.”
Ninety-day mortgage delinquency, including foreclosures, tumbled to 1.9
percent from 2.1 percent in February and March 2017.
CoreLogic reported the foreclosure inventory rate at 0.6 percent — unchanged since August 2017. In the same month last year, the foreclosure rate was 0.8 percent.
CoreLogic President and Chief Executive Officer Frank Martell cautioned about the potential impact of the upcoming hurricane season. He noted that serious delinquency in parts of Florida and Texas stand at more than double their levels before last years’ devastating hurricanes.