While the number of distressed mortgages declined to a pandemic low in November, sustainable improvement won’t be made until the job market grows, CoreLogic chief economist Frank Nothaft said.
“Forbearance and loan modification helped struggling families rebuild their financial house in hard-hit places,” he wrote in the company’s Loan Performance Insights report. “While vaccination will mitigate the pandemic, the best cure for delinquency is income restoration
The CoreLogic report showed November’s overall delinquency rate dipped to 5.9% from
With
“People may sell their homes, but you're not going to see the same level of short sales and foreclosure during the global financial crisis just given
Serious delinquencies — loans 90 days or more past due, including foreclosures — decreased to 3.9% from 4.1% one month earlier, while tripling
The share of 30- to 59-day early-stage delinquencies held at 1.4% month-over-month while dropping from 2% year-over-year. The rate for 60- to 89-day delinquencies stayed static at 0.6% from both the month and year before, though not every housing market saw the same recovery in distressed loans.
The three states with the highest foreclosure rates remain unchanged from a month ago, with rates of 1.1% in New York and 0.8% in both Hawaii and Maine. A total of 16 states — up from 14 the month before — tied for the lowest rate at 0.1%.
The three highest delinquency rates also held from October with Louisiana at 9.7%, Mississippi at 8.9% and New York at 8.5%. Idaho again had the lowest delinquency rate at 3.1%, while Montana, Wisconsin and South Dakota tied for second at 3.4%.
In addition to reducing delinquency rates, a strong influx of jobs is a common denominator for metro areas predicted to