While distressed mortgage rates crept down overall, serious delinquencies logged in September were triple the year-ago rate, according to CoreLogic.
The Loan Performance Insights Report showed the September delinquency rate decreased to 6.3% from 6.6% in August and jumped from 3.8% year-over-year.
Similarly, serious delinquencies — loans 90 days or more past due, including foreclosures — drifted downward to 4.2% from 4.3% the month prior, but dwarfed September 2019's 1.3%. Mortgages past 120 days due but not yet in foreclosure rose to 3.3% from 3.2% month-to-month and from 1% year-to-year.
The pandemic caused seriously delinquent loans to surge from 1.5% in May to 3.4% in June and
"Although delinquencies remain high, it’s clear the economy has passed an initial stress test.
The rate of 30- to 59-day early-stage delinquencies stayed mostly level, falling to 1.5% in September from 1.6% in August and 1.9% in September 2019. The rate for 60- to 89-day delinquencies dipped to 0.7% from 8.8% month-over-month, while rising from 0.6% year-over year.
The foreclosure rate held at 0.3% from August and edged down from 0.4% annually as
At the state level, the highest foreclosure rates came in New York at 1.2%, Maine and Hawaii, both at 0.8%. A total of 14 states tied for the lowest rate at 0.1%.
Louisiana had the highest delinquency rate at 10.1%, followed 9.2% in Mississippi and 9% in New York. Idaho fell at the other end of the spectrum with the lowest delinquency rate of 3.4% with 3.6% in South Dakota and 3.7% in Wisconsin not far off.