Early-stage mortgage delinquencies jump after hurricane season
Despite the overall mortgage delinquency rate being down in October, early-stage mortgage delinquencies increased following an active hurricane season, according to CoreLogic's Loan Performance Insights Report.
Nationwide, 5.1% of mortgages were in some stage of delinquency in October, a 0.1 percentage point decline from October 2016 when the overall delinquency rate was 5.2%. The rate for early-stage delinquencies, defined as 30-59 days past due, was 2.3% in October, a 0.1 percentage point increase from the year prior.
"The temporary rise in September's early-stage delinquencies reflected the impact of the hurricanes in Texas, Florida and Puerto Rico, but now the impact from the hurricanes is fading from a national perspective," said Frank Nothaft, chief economist for CoreLogic, in a press release.
"While the national impact is waning, the local impact remains. Some Florida markets continue to see increases in early-stage delinquency transition rates in October, reaching 5% on average in Miami, Orlando, Tampa, Naples and Cape Coral," he continued.
In Texas, the Houston, Beaumont, Victoria and Corpus Christie markets peaked above 7% in September, but are on the mend and improving in October.
The share of mortgages that were 60-89 days past due was up 0.2% points to 0.9% both year-over-year and month-over-month in October. The serious delinquency rate, referring to loans 90 or more days past due, remained unchanged at 1.9% from September but was down from 2.3% from the previous year.
The foreclosure inventory rate held steady at 0.6% since August, the lowest level since June 2007 when it was also 0.6%.