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Although Gradually Improving, Delinquencies Remain Elevated
Tuesday, January 12, 2021
The rate of mortgage delinquencies remains
significantly elevated from last year, but there is gradual improvement. The national
rate moved higher in October on an annual basis per CoreLogic's Loan
Performance Insights Report. Loans that were 30 or more days past due,
including those in foreclosure, represented 6.1 percent of all active mortgages
compared to 3.7 percent in October 2019. In September, however, the annual rate
of increase was 6.3 percent. Early-stage delinquencies are exhibiting the
most positive trend. Loans that were 30 to 59 days past due declined from a 1.8
percent rate in October 2019 to 1.4 percent. The rate for that delinquency
bucket spiked at 4.2 percent in April when the first
financial effects of the COVID-19 pandemic hit. The rate for loans in "adverse"
delinquency, i.e., 60 to 89 days non-current, was unchanged from a year earlier
at 0.6 percent.
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