Serious delinquencies level off

Six-point three percent of all U.S. mortgages were in some state of delinquency in September, a 2.5 percent increase from exactly one year earlier, according to a report.

Early-stage delinquencies – 30 to 59 days past due – were down slightly year-over-year, while adverse delinquencies – 60 to 89 days past due – were virtually unchanged from September 2019, Irvine-based CoreLogic reported 

Serious delinquencies, those past due by 90 days or more, were at 4.2 percent, up from 1.3 percent in September 2019 but down from 4.3 percent. That marked the first time since the start of the pandemic that serious delinquencies have been level two consecutive months.

All of these categories include foreclosures.

The national foreclosure rate was 0.3 percent, effectively unchanged year-over-year.

“Although delinquencies remain high, it’s clear the economy has passed an initial stress test. High home equity balances and structural protections put in place as a result of the Great Recession contributed to surviving this test,” said Frank Martell, president and chief executive officer of CoreLogic in the statement.

“Housing demand remains strong, and rates low, which provides optimism that the housing market will continue to be a bright spot in this COVID-ravaged economy.”

In the Inland Empire, early-state delinquencies were at 6.8 percent in September, up from 3.7 percent one year earlier, while serious delinquencies were at 4.5 percent, up from one percent year-over-year.

The region’s foreclosure rate was 0.2 percent, a slight decrease from a year earlier, according to the report.