28
NATIONAL
DELINQUENCY
RATE DIPS TO PRE-
PANDEMIC LEVELS
CoreLogic has released its monthly Loan
Performance Insights Report for November
2021, showing nationwide mortgage rates and
the effects of delinquency.
According to CoreLogic, the solutions
provider examines all stages of delinquency, as
shown in the full report. In November 2021, the
U.S. delinquency and transition rates, and their
year-over-year changes, are:
» Early-Stage Delinquencies (30 to 59
days past due): 1.2%, down from 1.4% in
November 2020.
» Adverse Delinquency (60 to 89 days past due):
0.3%, down from 0.6% in November 2020.
» Serious Delinquency (90 days or more
past due, including loans in foreclosure):
2%, down from 3.9% in November 2020
and a high of 4.3% in August 2020.
» Foreclosure Inventory Rate (the share
of mortgages in some stage of the
foreclosure process): 0.2%, down from
0.3% in November 2020. is remains
the lowest foreclosure rate recorded since
1999.
» Transition Rate (the share of mortgages
that transitioned from current to 30
days past due): 0.6%, down from 0.8% in
November 2020.
e data from November marks the
first time since the onset of the COVID-19
pandemic that delinquencies have fallen
to levels seen in March 2020. According
to CoreLogic, this is a sign that mortgage
performance is following the nation's income
growth.
"At the same time, foreclosure rates remain
at historic lows as borrowers have been able
to lean into the equity generated by a year of
record-breaking home price growth," the report
said. "ese factors combined have helped
borrowers weather the lasting economic impacts
brought on by the pandemic and avoid falling
behind on payments or losing their homes."
"Nonfarm employment rose 6.45 million
during 2021, helping to rebuild income for
families under financial stress during the
pandemic," said Dr. Frank Nothaft, Chief
Economist at CoreLogic. "Income growth
has helped to reduce past-due rates and home
equity build-up has reduced the likelihood of
a distressed sale for families that experience
financial challenges."
Journal
