Delinquencies Down, But Concerns Remain
In December 2020, 5.8% of home mortgages were in some stage of delinquency according to the latest CoreLogic Loan Performance Insights Report. (CoreLogic)
– M-O-M: Deliquincies were down 0.1% from November 2020
– Y-O-Y: Deliquincies were up 2.1% compared to the same time a year ago
Early and late-stage delinquencies continue to improve, while late-stage delinquencies continue to concern economists.
– EARLY STAGE: Was 1.4% in December 2020 which was below the year-ago rate of 1.8%.
– MID-STAGE: Was 0.5% in December 2020 which was down from 0.6% in December 2019
– LATE-STAGE: Was 3.9% in December which is more than three times that of December 2019
Dr. Frank Nothaft, Chief Economist for CoreLogic, said in a statement that most of these delinquencies are occurring in areas that have faced high rates of unemployment, “By state, Hawaii and Nevada had the largest 12-month spike in delinquency rates, both up 4.1 percentage points. They also had large increases in unemployment rates, up 6.6 percentage points in Hawaii and 5.5 percentage points in Nevada compared with 3.1 percentage points for the U.S.”