IRVINE, Calif .– (COMMERCIAL THREAD) – CoreLogic, a leading global provider of real estate information, analytics and data-driven solutions, today released its monthly loan performance report for June 2021.
For the month of June, 4.4% of all mortgages in the United States were at some stage of delinquency (30 days or more past due, including those in foreclosure), which is a decrease of 2.7 percentage points of delinquency compared to June 2020, when it was 7.1%. Despite the positive trend, overall delinquencies remain above the pre-pandemic rate of February 2020 of 3.6%.
To get an accurate view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In June 2021, the delinquency and transition rates in the United States, as well as their variations from year to year, were as follows:
- Early delinquency (30 to 59 days late): 1.1%, compared to 1.8% in June 2020.
- Unwanted delinquency (60 to 89 days late): 0.3%, compared to 1.8% in June 2020.
- Serious delinquency (90 days or more past due, including foreclosed loans): 3%, up from 3.4% in June 2020. Although still high, this is the tenth consecutive month of decline and delinquency rate lowest since May 2020.
- Foreclosure inventory rate (the share of mortgages at a certain stage of the foreclosure process): 0.2%, compared with 0.3% in June 2020. This is the lowest foreclosure rate recorded since CoreLogic began recording data (1999).
- Transition rate (the share of mortgages that went from current maturities to 30 days): 0.6%, down from 1% in June 2020.
In June, the federal moratorium on foreclosures was extended once again until July 31 to give homeowners more time to get back on track financially. The moratorium helped shift the foreclosure rate to a new generational low. However, a CoreLogic survey of mortgage holders found that nearly half (43%) of respondents said they did not understand government mortgage relief programs, which could contribute to low mortgage rates. higher overall failures.
“The downward trend in defaults, especially severe cases, is very encouraging – and testifies to the impact of the significant economic rebound over the past six months, as well as government stimuli, record mortgage rates and loan modification options, âsaid Frank Martell, president and CEO of CoreLogic. âProviding resources to distressed homeowners to educate them on available government and private sector support will help reduce delinquency and foreclosure rates even further over the remainder of this year. ”
“While job and income growth has helped bring down delinquency rates, many families remain in financial difficulty,” said Dr Frank Nothaft, chief economist at CoreLogic. âMore than one million borrowers missed six or more payments in June, triple the number of borrowers before the pandemic. CoreLogic’s analysis found that by June 2021, borrowers withheld and late on mortgage payments had missed an average of 10 monthly payments. ”
State and metro to take away:
In June, all of the U.S. states saw a decline in overall annual delinquency rates, New Jersey (down 4.8 percentage points), New York (down 4.4 percentage points) and Florida ( down 4.1 percentage points) at the top with the largest declines.
All US subways also posted annual declines in overall delinquency rates in June, Miami (down 6.6 percentage points), Laredo, Texas (down 5.7 percentage points) and Kingston, New York (down 5.6 percentage points) recording the largest declines.
Nevertheless, high overall delinquency rates persist in some metropolitan areas, notably Odessa (11.1%) and Laredo (10.7%), Texas; Vineland, New Jersey (10.6%); and Pine Bluff, Arkansas (10.4%).
The next CoreLogic Loan Performance Insights report will be released on October 12, 2021, with data for July 2021. For current housing trends and data, visit the CoreLogic Intelligence blog: www.corelogic.com/intelligence.
Data in the CoreLogic LPI report represents foreclosure and delinquency activity reported through June 2021. The data in this report only takes into account first liens on a property and does not include secondary liens. Delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage privileges are not subject to foreclosure and are therefore excluded from the analysis. CoreLogic has approximately 75% lockdown data coverage in the United States.
About the CoreLogic Consumer Sentiment Survey on Housing
Over 3,000 consumers have been surveyed by CoreLogic via Qualtrics. The study is an annual boost in US real estate market dynamics focused on consumers looking to buy a home, consumers not looking to buy a home, and current mortgage holders. The survey was conducted in April 2021 and hosted on Qualtrics. The survey has a sampling error of approximately 3% at the total respondent level with a confidence level of 95%.
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