In August 2018, the national mortgage delinquency rate was the lowest its been in more than 12 years. CoreLogic's loan performance insights report measures delinquency rates to analyze overall market health.
The share of mortgages in the U.S. market that are 30 days or more past due (including foreclosures) was at four percent in August, marking a 0.6 percent annual decrease, while the foreclosure inventory rate decreased 0.1 percent annually to 0.5 percent for the country overall. CoreLogic finds that the rate of early-stage delinquencies, 30 to 59 days past due, was 1.8 percent in August, another metric with an annual decrease, 0.2 percent. The transition rate, or the share of mortgages transitioning from current to 30 days past due was 0.8 percent in August, 0.1 percent fewer than August 2017.
“With home-price growth building owners’ equity, and the low national unemployment rate providing opportunities for income growth, further declines in U.S. delinquency and foreclosure rates are likely in coming months,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The CoreLogic Home Price Index for the U.S. recorded 5.7 percent annual growth in August. This price gain helped the average homeowner build about $16,000 in equity during the prior year and reduces the likelihood of a borrower transitioning from delinquency to foreclosure.”