IRVINE, Calif.–New data show most home loan delinquencies dropped 2.3% year-over-year through November of 2021, the most recent data for which figures are available.
The numbers, released by global property information, analytics and data-enabled provider CoreLogic, show that mortgage loans in November were at their lowest delinquency rate since the pandemic began, with only 3.6% of all U.S. home loans showing 30 days or more past due.
This is the same rate reached in March 2020 at the start of the coronavirus pandemic, according to CoreLogic.
Similarly, foreclosure rates remain at historic lows, even after the government lifted the moratorium on foreclosures in the summer of 2021, CoreLogic reported, noting that several states, including New York, have kept foreclosure moratoriums in place through January 2022.
The Drivers
The CoreLogic report, however, states that high home values and record low interest rates also attributed to the low foreclosure rates. People were able to borrow against the equity in their home to avoid falling behind on mortgage payments, therefore averting foreclosure even in the face of potential job loss and other financial challenges, the company stated.
In addition, employment numbers continued to climb in 2021, further helping to rebuild income and help families get home loans back up to date. “Income growth has helped to reduce past-due rates and home equity build-up has reduced the likelihood of a distressed sale for families that experience financial challenges,” said Dr. Frank Nothaft, chief economist at CoreLogic, in a report on the firm’s website.
States With Biggest Changes
According to CoreLogic, the states with the greatest change in home loan delinquency rates since November 2020 are:
- Louisiana
- Mississippi
- New York
- Oklahoma
- Alabama
Each of those states experienced a 2.1% or more drop in delinquency rates between Nov. 2020 and November 2021.
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