It’s likely that fears of waves of pandemic-inspired foreclosures may not come to fruition.
Foreclosure Rates Down to 0.2% in June 2021
The foreclosure rate in June dropped to 0.2%, a 22-year and historically low rate, according to CoreLogic’s Loan Performance Insights report for June 2021. This is the lowest foreclosure rate recorded since CoreLogic began recording this specific data.
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Delinquency Rates Declined in June
CoreLogic indicated in its latest monthly Loan Performance Insights report that delinquency rates, like foreclosure rates, also declined in June 2021. Take a look:
- Early-Stage Delinquencies (30 to 59 days past due) – 1.1%, down from 1.8% in June 2020
- Adverse Delinquencies (60 to 89 days past due) – 0.3%, down from 1.8% in June 2020
- Serious Delinquencies (90 days or more past due including loans in foreclosure) – 3%, down from 3.4% in June 2020
Frank Martell, president and CEO of CoreLogic, said, “The downward trend in delinquencies, especially serious cases, is very encouraging – and a testimony to the impact of the significant economic rebound over the past six months, as well as government stimuli, record-low mortgage rates and loan modification options.”
Dr. Frank Nothaft, chief economist with CoreLogic, said, “While job and income growth have helped to push delinquency rates down, there are many families that remain in financial distress.” Nothaft noted that more than 1M borrowers had missed six or more mortgage payments as of June, triple the number of borrowers pre-pandemic.
Nothaft also noted that borrowers in forbearance and behind on mortgage payments had missed an average of 10 monthly mortgage payments.
State and Metro Takeaways
All states in the US reported a decrease in overall year-to-year delinquency rates in June 2021.
States with the largest decreases in y/y delinquency rates included:
- New Jersey – -4.8%
- New York – -4.4%
- Florida – -4.1%
Likewise, all metros in the US reported a decrease in overall year-to-year delinquency rates.
Metros with the largest decreases in y/y delinquency rates included:
- Miami – -6.6%
- Laredo TX – -5.7%
- Kingston NY – -5.6%
Metros having elevated delinquency ratees in June 2021 included:
- Odessa TX – 11.1%
- Laredo TX – 10.7%
- Vineland NJ – 10.6%
- Pine Bluff AK – 10.4%
Thanks to CoreLogic and Inman.