The percentage of mortgages 30 days or more past due declined during October, according to CoreLogic’s Loan Performance Insights Report.
The report found 5.1 percent of mortgages were in some stage of delinquency in October 2017, down 0.1 percent year-over-year compared with October 2016.
CoreLogic said the foreclosure inventory rate in October was 0.6 percent, down 0.2 percent from 0.8 percent in October 2016.
“After rising in September, early-stage delinquencies declined by 0.1 percentage points month over month in October. The temporary rise in September’s early-stage delinquencies reflected the impact of the hurricanes in Texas, Florida and Puerto Rico, but now the impact from the hurricanes is fading from a national perspective,” CoreLogic Chief Economist Frank Nothaft said in a release.
“While the national impact is waning, the local impact remains. Some Florida markets continue to see increases in early-stage delinquency transition rates in October, reaching 5 percent, on average, in Miami, Orlando, Tampa, Naples and Cape Coral,” Nothaft added. “Texas markets such as Houston, Beaumont, Victoria and Corpus Christie peaked at over 7 percent in September, but are on the mend and improving in October.”
The report said the share of mortgages that transitioned from current to 30 days past due was 1.1 percent in October 2017, down from 1.3 percent in September 2017 and up from 1 percent in October 2016.
“While the national impact of the recent hurricanes will soon fade, the human impact will remain for years. For example, the displacement and rebuilding in New Orleans after Hurricane Katrina extended for several years and altered the character of the city, an impact that still remains today,” CoreLogic President and CEO Frank Martell said.
“The reconstruction of the housing stock and infrastructure impacted by the storms should provide a small stimulus to local economies. This rebuilding will occur against a backdrop of wage growth, consumer confidence and spending in the national economy which should continue to provide a solid foundation for real estate demand in the storm-impacted areas and beyond,” Martell said.