The percentage of mortgage loans considered seriously delinquent in May dropped to its lowest level in nearly 10 years, according to CoreLogic’s Loan Performance Insight Report.
During May, 4.5 percent of mortgages were in some stage of delinquency (at least 30 days or more past due). That’s a 0.8 percent decrease from May 2016.
CoreLogic said the share of mortgages in the foreclosure process dropped to 0.7 percent in May, a decrease from the1 percent share in May 2016. The serious delinquency rate (90 days or more past due) dropped in May to 2 percent, down from the 2.6 percent in May 2016. CoreLogic said the serious delinquency rate is the lowest since November 2007.
“Strong employment growth and home price increases have contributed to improved mortgage performance,” CoreLogic Chief Economist Frank Nothaft said in a release. “However, the same positive economic conditions helping performance have also contributed to a lack of affordable supply, creating challenges for homebuyers.”
The share of mortgages that transitioned from current to 30 days past due in May was 0.8 percent, a 0.1 percent year-over-year decrease, CoreLogic found. “A prolonged period of relatively tight underwriting criteria has driven delinquencies down to pre-crisis levels across many parts of the country,” CoreLogic President and CEO Frank Martell said. “As pressure to relax underwriting standards increases, the industry needs to proceed carefully and take progressive, sensible actions that protect hard-fought improvements in mortgage performance.”