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Mortgage delinquencies fall to their lowest level in 20 years

On Behalf of | Jan 20, 2020 | Mortgages

Mortgage delinquencies in Delaware and around the country have fallen to their lowest level in 20 years according to data released by CoreLogic. The consumer and business analytics company’s latest Loan Performance Insight Report reveals that about 3.7% of the nation’s mortgages were at least 30 days past due at the end of October 2019. This figure represents a 0.4 percent month-over-month drop.

The CoreLogic report contained even rosier news about mortgage foreclosures. The data reveals that the foreclosure inventory rate has fallen to just 0.4%, which is a level that was last reached in early 1999. The percentage of mortgages between 30 and 59 days past due, between 60 and 89 days past due, and more than 90 days past due also fell in October. Experts say that rising home values are likely responsible for falling mortgage delinquencies as homeowners with equity are less likely to default on their loans. Home values across the country rose by 3.3% between October 2018 and October 2019 with an average increase in equity of $5,300 according to CoreLogic.

However, the percentage of mortgages at least 30 days past due did increase in October 2019 in some parts of the country. Most of these increases were observed in the South and Midwest with the largest increases in Pine Bluff, Arkansas, Dubuque, Iowa and Rockford, Illinois. Serious delinquency rates increased slightly in 14 communities.

Homeowners who select adjustable mortgages sometimes find it difficult to make their monthly payments when introductory interest rates expire. Attorneys with experience in this area could help home buyers to avoid this situation by scrutinizing loan documents and explaining how payments could fluctuate over time based on prevailing interest rates.