Mortgage Delinquency Rate Hits Lowest Level 20 Years

The good news just keeps coming for the residential real estate industry!  The most recent is from a report just released by CoreLogic showing the mortgage delinquency rate in the U.S. was at 3.8%, the lowest rate in at least 20 years!  In addition, not one state in the country had an increase in overall delinquency rates in September.

Foreclosure Inventory Reaches Low as well…

The foreclosure inventory rate for September was 0.4%, another 20+ year low!

Mortgage Delinquency Rates Continue To Fall And Now Back To Normal

Mortgage Delinquency rates, borrowers that are 60 or more days past due, are projected to be 2.21 percent for the 4th quarter of 2016, down from 2.46% the quarter before and marking the 13th consecutive quarter mortgage delinquency rates have fallen, according to a report just released by TransUnion.  According to the report, mortgage delinquency rates peaked at 7.21 percent during the 1st quarter of 2010 and have declined for 23 of the last 26 quarters since.  TransUnion considers the current mortgage delinquency rate to be normal and is projecting the delinquency rate will fall even further next year down to 2.11% by the end of 2017.

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Home Loan Delinquencies Continue To Decline-May Lead To Easing Requirements

According to a report just released by TransUnion, the mortgage delinquency rate for borrowers that are 60 days or more delinquent, declined almost 30 percent during the 3rd quarter of 2015 from a year ago.  During the third quarter of this year, the mortgage delinquency rate was 2.40%, down from 3.36% during the third quarter of 2014.

Mortgage Delinquencies Down 65% From Peak

The current mortgage delinquency rate of 2.40% is down 65% from when the delinquency rate peaked at 6.94% in the 1st quarter of 2010 as a result of the housing market bubble bursting in 2008.

Millennials Pay Their House Payments!

According to the report, the age group with the lowest mortgage delinquency rate fell in the millennial category having a delinquency rate of just 1.62%.  Right behind the young borrowers were the old ones (well, relatively speaking) with the 60+ age group having the 2nd lowest delinquency rate with 1.77%.

Out with the bad in with the good…

Joe Mellman, vice president and mortgage business leader for TransUnion, attributes the mortgage delinquency improvement to a combination of factors including:

  • Continued “funneling” of delinquent accounts through he foreclosure process
  • Strong performance by recent borrowers
  • Improving home prices

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St Louis Mortgage Delinquency Rate Declined Over Ten Percent In Past Year

dennis-norman-st-louis-realtor-During the third quarter of 2012, 3.71 percent of St Louis homeowners with a mortgage were 60+ days delinquent on their mortgage, a slight decline from the prior quarter when the rate was 3.88 percent and a decline of over 10 percent from a year ago when the St Louis mortgage delinquency rate was 4.13 percent, according to TransUnion.  This marks the third consecutive quarter the St Louis mortgage delinquency rate has declined.

St. Louis mortgage delinquency rates are significantly below the national delinquency rate which was 5.41 percent in the third quarter of this year.  Additionally, the St Louis mortgage delinquency rates are falling faster than the national average as the national mortgage delinquency rate was down just shy of 8 percent in the past year, well behind St Louis’ ten percent decline.

 

 

Mortgage Delinquencies Fall to Three-Year Low

The percentage of first-lien mortgages that were current and performing at the end of the first quarter of 2012 increased to the highest levels in three years, according to a report published today by the Office of the Comptroller of the Currency. Continue reading “Mortgage Delinquencies Fall to Three-Year Low

Mortgage loan delinquencies drop to lowest rate since 2009

st-louis-realtor-mortgage-delinquency-rateMore good news on the housing market! The national mortgage delinquency rate (borrowers that are 60 or more days past due) declined for the first 3 months of 2012, coming in at 5.78 percent according to a report issued by TransUnion. This is after increases in the delinquency rate in the prior 2 quarters and is the lowest rate since the 1st quarter of 2009. Continue reading “Mortgage loan delinquencies drop to lowest rate since 2009

Mortgage Delinquences Increase in December but are Down over 25 percent from a year ago

Dennis Norman, St Louis REALTOR - mortgage delinquency ratesMortgage delinquencies in December increased to 2.24 percent of all mortgages, a slight increase from the month before when delinquencies were at 2.22 percent but a decrease of over 25 percent from a year ago when the rate was 3.01 percent. The mortgage delinquency rate is something I pay close attention to because it is the “leading indicator” of foreclosures and foreclosures and REO’s are one of the major hurdles to a recovery in the housing market. Declining delinquency rates are our first clue that the housing market is headed to a recovery. Continue reading “Mortgage Delinquences Increase in December but are Down over 25 percent from a year ago

Mortgage loan delinquency hits 2 year low; foreclose rate ties highest on record

The Mortgage Bankers Association released the results of it’s National Delinquency Survey for the 4th quarter of 2010 and it shows very mixed results. On the positive side of things, overall mortgage loan delinquency in the U.S. has dropped to 8.22 percent which is the lowest rate since 4th quarter 2008 when the rate was 7.88 percent. On the flip side of the coin, the overall foreclosure rate for the quarter was 4.63 percent which ties the highest rate on record which was hit in the 1st quarter of 2010. Continue reading “Mortgage loan delinquency hits 2 year low; foreclose rate ties highest on record

Report shows mortgage delinquency ‘Roll Rates’ peaked in summer of 2009; Sign that worst is over?

Dennis Norman St Louis

Dennis Norman

Finally, some more good news about the housing market! TransUnion released a study of mortgage delinquency “roll rates” (when delinquent borrowers move to a more delinquent status, say from 30 days late to 60 days late, then 90 and so on) which showed that mortgage delinquency roll rates peaked in the summer of 2009. According to the study, approximately 24.4 percent of consumers who were 30 days past due on their mortgage payments in June 2009 became 60 days past due in July 2009 and nearly 37.6 percent of consumers 60 days delinquent on their mortgage payments becamse 90 days late in the same time. Continue reading “Report shows mortgage delinquency ‘Roll Rates’ peaked in summer of 2009; Sign that worst is over?

Mortgage Delinquencies Fall for Second Consecutive Quarter

Dennis Norman St Louis

Dennis Norman

For some time now I’ve been saying the precursor to the housing market recovering is for the mortgage delinquency and foreclosure rates to fall from the present, near-record levels, down to closer to historical norms. The current mortgage loan delinquency report from TransUnion shows that, for the second consecutive quarter, things are headed the right direction. Granted the decline in loans that are 60 or more days past due declined only 1.48 percent to 6.67 percent but at least it is going the right diretion. The loan delinquency rate for the 2nd quarter of 6.67 percent is still an increase of 14.8 percent from a year ago when the delinquency rate was 5.81 percent. Continue reading “Mortgage Delinquencies Fall for Second Consecutive Quarter

Mortgage Default Rates Improve In June

Dennis Norman

Finally, some good news!

This morning Standard & Poor’s released their S&P/Experian Consumer Credit Default Index for June showing that first-mortgage default rates declined 5 percent from the month before and were down 45.2 percent from a year ago.

I have been saying for a while, we are not going to see any sort of sustainable recovery of the housing market until we see mortgage delinquency and default rates decline thereby bringing down the foreclosure rate and ultimately easing the downward pricing pressure on the housing market caused by foreclosures.  Maybe, just maybe, this is the beginning of the trend for such a decline in delinquencies.  Let’s hope we see similar declines in the coming months.

 

Almost 1 in 8 Missourians are delinquent on mortgage payments according to MBA report

Missouri ranks 21st in delinquencies and 30th in foreclosures

Mortgage Bankers Association Logo MBAAccording to a report just issued by the Mortgage Bankers Association, the mortgage delinquency rate on one-to-four-unit residential properties in the U.S. rose to a new record rate of 9.64 percent.  Here in Missouri, the delinquency rate is slightly lower at 9.41 percent.

Included in the MBA’s report as a “delinquency” are loans that are at least one payment past due, but does NOT include loans somewhere in the process of foreclosure. At the end of third quarter 2.05 percent of mortgage loans in Missouri were in the foreclosure process. Therefore 11.46 percent of mortgage loans in Missouri are actually delinquent once we add in the ones in foreclosure. Continue reading “Almost 1 in 8 Missourians are delinquent on mortgage payments according to MBA report

St Louis Real Estate News: St. Louis foreclosure rate increases, again

Dennis Norman

Dennis Norman

Foreclosure rates in St. Louis increased for the month of September over the same period last year according to a report released by First American CoreLogic. The report showed the St. Louis metro area to have a foreclosure rate of 1.26 percent in September, up just slightly from August’s rate of 1.24 percent, but up over 59 percent from a year ago when the rate was 0.79 percent.

firstamerican corelogic

The national foreclosure rate for September was over double the rate of St. Louis at 2.93 percent and was an increase of 75 percent from a year ago when the national foreclosure rate was 1.67 percent. 

Foreclosure Rate in St. Louis Increases

Dennis Norman

Dennis Norman

By Dennis Norman

Foreclosure rates in St. Louis increased for the month of August over the same period last year according to a report released today by First American CoreLogic. The report showed the St. Louis metro area to have a foreclosure rate of 1.24 percent in August, up just slightly from July’s rate of 1.20 percent, but up over 63 percent from a year ago when the rate was 0.76 percent.

firstamerican corelogic

As bad as the foreclosure rate for St. Louis sounds we are still doing better than the national rate of 2.86 percent for August.  The state of Missouri had a foreclosure rate of 1.16 percent for August, up a whopping 84 percent from a year ago.

Foreclosures in St. Louis Increase 50 Percent in July from a Year Ago; Mortgage Delinquencies Follow Suit

Dennis Norman
Dennis Norman

By: Dennis Norman

Anyone that follows any of my posts on various real estate blogs may well be getting tired of hearing me talk about foreclosure and mortgage delinquency rates.  This is no doubt especially true when I am doing it in the context of  trying to “chill” the excitement over recent “good” news on the housing market.  However, there is good reason for this; these two issues are real problems, including right here in St. Louis, and they are not going away anytime soon.

firstamerican corelogic

This was evidenced in a report released today by First American CoreLogic which showed the St. Louis metro area to have a foreclosure rate of 1.20 percent in July, 2009, a whopping 50 percent increase from the 0.80 percent rate in July, 2008.  The report also showed that the rate of seriously delinquent home loans (90 days or more past due) in St. Louis was 4.50 percent  for July, 2009, a increase of 45 percent from the 3.10 percent rate in July 2008.    Continue reading “Foreclosures in St. Louis Increase 50 Percent in July from a Year Ago; Mortgage Delinquencies Follow Suit

One in twelve borrowers seriously delinquent on their mortgage

Dennis Norman
Dennis Norman

By: Dennis Norman

All the news lately about the housing market, home sales in particular, has been encouraging and showing signs of stabilization in the real estate market and demonstrating that the real estate market may have seen the worst. Just when you think you may be through the storm though you see another dark cloud lurking in the distance. For the real estate market this dark cloud could very well be mortgage delinquencies and foreclosures.

 At the end of this week the Mortgage Bankers Association reported that serious mortgage delinquencies (homeowners that are 90 or more days past due on their house payments or are already in foreclosure proceedings) reached record levels in the 2nd quarter of 2009 and surpassing the record set in the prior quarter. According to the Mortgage Bankers Association statistics over 13 percent of all loans are now past due and 1 in 12 borrowers is seriously delinquent on their mortgage. This is a 45 percent increase from a year ago when 1 in 22 borrowers were seriously delinquent and a whopping 70 percent increase from two years ago when only it was 1 in 40. Continue reading “One in twelve borrowers seriously delinquent on their mortgage