Historically, mortgage delinquencies in the month of April have risen 85% of the time, but April 2018 bucked that trend as they fell, according to Black Knight.
The total delinquency rate dropped 10.17% year-over-year in April and 1.6% from the
The improving delinquency rate was driven by progress made in hurricane-affected areas, in addition to slight delinquency declines in non-impacted regions. Foreclosure starts in particular fell 30% in cities impacted by hurricanes last year, while the number of loans overall in active foreclosure fell to their lowest point since August 2006.
While a healthier economy has also helped better the national delinquency rate, job and income growth still didn't put a halt to affordability struggles for homebuyers.
Growth in home prices and interest rates caused the average monthly payment for a median-priced home with a 20% down payment to shoot up 14% since the start of 2018, an increase of $150 per month. And though much of the nation is more affordable than long-term norms, seven states are less affordable historically with 12 states nearing the same outcome.
Housing affordability could be in danger of hitting an all-time low point in five years, according to one Black Knight projection.
"In recent years, incomes have been growing at a rate of 4.37% annually, as compared to a 2.75% 25-year average. Even so, a half percentage point increase in interest rates each year, combined with the current rate of [home price appreciation], would push affordability to an all-time low by 2023," Ben Graboske, executive vice president of Black Knight's data and analytics division, said in a press release.
