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Mortgage Delinquency Rate at Prepandemic Level

The number of homeowners who are late paying their mortgage (3.8%) is largely the same as it was before the pandemic began (3.7% in 2019).

NEW YORK – The most recent CoreLogic Loan Performance Report find that 3.8% of mortgages were delinquent by at least 30 days in October – a percentage that includes homes in foreclosure – which is close to the 3.7% rate registered in the same period of 2019.

In October 2020, the delinquency rate was 6.1%.

The drop in 2021 October delinquencies follows home equity increases and labor market improvements, and CoreLogic expects rates to continue declining during 2022.

The report found that 82% of the jobs lost in March and April 2020 were recovered by October, accounting for 18.2 million Americans back at work, according to the U.S. Bureau of Labor Statistics.

“Improving economic security and the benefits of disciplined underwriting practices over the past decade are helping reduce or avoid mortgage delinquencies,” says Frank Martell, president and CEO of CoreLogic. The expectation, he added, is that delinquencies will trend down as the economy continues to rebound from the pandemic, employment grows and high levels of fiscal and monetary stimulus continue.

In October, the rate of mortgages transitioning from current to 30 days past due dropped one basis point in one year to 0.7%. The serious mortgage delinquency rate (90 days or more past due, including loans in forbearance) dipped 19 basis points year over year to 2.2%.

Frank Nothaft, CoreLogic’s chief economist, says that loan modifications have helped reduce the percentage of loans in serious delinquency.

Source: HousingWire (01/11/22) Nunes, Flávia Furlan

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