Mortgage delinquency rates fell to near record lows: CoreLogic

Mortgage delinquency rates have dropped to near record lows as the housing market showed evidence of a recovery, reports suggest. 

Delinquency rates on mortgages dipped to 2.9% in November 2022, marking a drop of 0.7 percentage points compared to 3.6% in November 2021, according to the January loan performance insights report by CoreLogic. 

The foreclosure rate stood at 0.3% as of November 2022. That level is up from 0.2% in 2021, but remains "near an all-time low," the real-estate data company said in its report. Mortgage delinquency is a state in which payments are 30 or more days past due, as defined in CoreLogic’s analysis. 

All states saw a year-over-year decline in overall delinquency rates as of November 2022, CoreLogic said in its report. These are the states that experienced the highest drops in mortgage delinquency rates. 

• Louisiana (1.9 percentage point drop)
• Alaska (1.6 percentage point dip)
• District of Columbia and Hawaii (both saw 1.3 percentage point decreases)

If you’re having trouble making your mortgage payments, you could consider refinancing your mortgage to a lower interest rate to help reduce your monthly payments. You can visit Credible to get your personalized rate, without affecting your credit score.

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Some metro areas saw increases in mortgage delinquency rates

Even though all states saw an overall drop in mortgage delinquency rates, 18 U.S. metro areas experienced increases in delinquency rates in November 2022, up from six in October and one in September. Certain levels of delinquency also went up for overall mortgages in the country for November, according to CoreLogic’s data. 

Early-stage delinquencies, defined as payments 30 to 59 days past due were 1.4%, up from 1.2% in November 2021. Adverse delinquency rates, defined as 60 to 89 days past due were 0.4%, up from 0.3% in November 2021. 

These were the three areas that saw the largest gains in mortgage delinquency rates year-over-year in November, according to CoreLogic data. 

• Cape Coral-Fort Myers, Florida (up 3.1 percentage points)
• Punta Gorda, Florida (a spike of 2.9 percentage points)
• Bloomsburg-Berwick, Pennsylvania (an increase of 0.6 percentage points)

If you’re struggling with making your mortgage payments, you can consider refinancing your mortgage to a lower interest rate to help you lower your monthly payments. You can visit Credible to speak with a mortgage refinancing expert, to see if this option is right for you.

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Housing market is improving: RedFin 

Overall mortgage rates in recent months have dropped from their November highs, raising expectations of a possible housing market recovery, according to a report. 

The average 30-year fixed mortgage rate dropped to 6.15% from its November high of 7.08%, according to a Redfin report published on January 25. That represents the largest 10-week decline since 2009, Redfin said in its report. Mortgage applications also increased by 28% from early November.

"This is already translating into more home sales," Redfin said in its report. "Redfin agents report that bidding wars are back in some markets, including Seattle, central Florida and Richmond, VA. Homebuyer demand remains down from its early 2022 highs, but the market has shifted into a new phase and well-priced listings are selling quickly."

"Some buyers are even scoring a rate that starts with a five, an important psychological threshold, while others are opting for an adjustable-rate mortgage or getting a rate buydown as a seller concession," Redfin stated. 

If you want to take advantage of lower rates, you could consider refinancing your mortgage. You can visit Credible to compare offers from different lenders at once, without affecting your credit score. 

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