Mortgage delays improved best in 1 month after pandemic

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Mortgage delinquency rates in March were at their lowest level since the economic turmoil caused by the pandemic began about a year ago, according to the CoreLogic Loan Performance Insights Report.

The overall arrears rate of 4.9% was still 1.3 percentage points higher than the 3.6% arrears rate in March 2020, but on a monthly basis the arrears rate fell 80 basis points from 5.7 % in February. IN January, the rate was 5.6%, while in December it was 5.8%.

“Many forces came together in March to achieve the largest single month improvement in overall crime rates since the start of the pandemic,” Frank Notaft, chief economist at CoreLogic, said in a press release. “In addition to ongoing government support, including stimulus payments and mortgage waiver programs, the US economy added 770,000 jobs in March – the largest increase since August 2020 ”.

Loans across all delinquency segments – with the exception of those more than 90 days overdue since their last payment or in circulation – fell compared to March 2020.

The March rate on seriously overdue mortgages of 3.5% was more than 2.3 percentage points higher than a year ago, when it was 1.2%. This is 20 bp. below the February 3.7%.

Short-term delinquencies, defined as loans that are 30 to 59 days late, showed the largest improvement – 1% in March from 1.9% a year earlier. Compared to February, the growth amounted to 50 bp. from 1.5%.

Another positive point is that the percentage of current loans falling into the category of overdue for 30 days or more improved in March to 0.4% from 0.9% in February and 1% in March 2020.

“Homeowners are paying off their debts as the economic impact of the pandemic begins to wane, another sign of progress towards overall recovery,” said Frank Martell, CEO and president of CoreLogic.

The five states with the highest overall crime rates in March were: Louisiana – 8.1%; Mississippi – 7.4%; New York – 7.1%; Maryland – 6.6%; and New Jersey – 6.5%.



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