Mortgage Delinquency Dropped to 4.1% in July

Irvine, CA, October 9, 2018-Nationally, 4.1% of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in July 2018, representing a 0.6 percentage point decline in the overall delinquency rate compared with July 2017, when it was 4.7%, according to the CoreLogic monthly Loan Performance Insights Report.

As of July 2018, the foreclosure inventory rate-which measures the share of mortgages in some stage of the foreclosure process-was 0.5%, down 0.2 percentage points from 0.7% in July 2017, and the lowest for a July since 2006. The July 2018 foreclosure inventory rate remained unchanged from April, May and June rates of this year. 

The rate for early-stage delinquencies-defined as 30 to 59 days past due-was 1.9% in July 2018, down from 2.1% in July 2017. The share of mortgages that were 60 to 89 days past due in July 2018 was 0.6%, down from 0.7% in July 2017. The serious delinquency rate-defined as 90 days or more past due, including loans in foreclosure-was 1.6% in July 2018, down from 1.9% in July 2017. This serious delinquency rate is the lowest for July since 2006 when it was 1.4% and the lowest for any month since June 2007 when it was also 1.6%.

Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 0.8% in July 2018, down from 0.9% in July 2017. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2%, while it peaked in November 2008 at 2%.