CoreLogic Reports U.S. Overall Delinquency and Foreclosure Rates Lowest for December Since at Least 2000

CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report. The report shows that, nationally, 4.1 percent of mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in December 2018, representing a 1.2 percentage point decline in the overall delinquency rate compared with December 2017, when it was 5.3 percent.

As of December 2018, the foreclosure inventory rate – which measures the share of mortgages in some stage of the foreclosure process – was 0.4 percent, down 0.2 percentage points from December 2017. The December 2018 foreclosure inventory rate tied the November 2018 rate as the lowest for any month since at least January 2000.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency, as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.

The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 2 percent in December 2018, down from 2.4 percent in December 2017. The share of mortgages that were 60 to 89 days past due in December 2018 was 0.7 percent, down from 0.8 percent in December 2017. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.5 percent in December 2018, down from 2.1 percent in December 2017. The serious delinquency rate has been steady at 1.5 percent since August 2018 – the lowest level for any month since March 2007 when it was also 1.5 percent.

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 0.9 percent in December 2018, down from 1.2 percent in December 2017. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent, while it peaked in November 2008 at 2 percent.

"Our latest home equity report found that the average homeowner saw a $9,700 increase in their equity during 2018," said Dr. Frank Nothaft, chief economist for CoreLogic. "With additional 'skin in the game,' rising equity reduces the chances of a foreclosure, helping to push the foreclosure rate down to its lowest level since at least 2000."

Since the beginning of 2018, the nation's overall delinquency rate has fallen to pre-housing crisis levels, not seen since early 2006. However, several metropolitan areas in Florida, Georgia and North Carolina are still struggling to recover from natural disasters that impacted those areas. In December 2018, 10 out of the 12 metropolitan areas that logged increases in their serious delinquency rate were located in the Southeast, with the largest gains occurring in the Panama City, Florida metropolitan area.

"On a national basis, income and home-price growth continue to support strong loan performance," said Frank Martell, president and CEO of CoreLogic. "Although things look good across most of the nation, areas that were impacted by hurricanes and other natural hazards are experiencing a sharp increase in the numbers of mortgages moving into 60-day delinquency or worse. One specific example is Panama City, Florida, which was devastated by Hurricane Michael, where 60-day delinquencies rose to 3.5 percent in December."

The next CoreLogic Loan Performance Insights Report will be released on April 9, 2019, featuring data for January 2019.

For ongoing housing trends and data, visit the CoreLogic Insights Blog: www.corelogic.com/insights.

About CoreLogic

CoreLogic (NYSE: CLGX) is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.