Home Loan Delinquency Falls Below March 2020 Levels, Lowest Since Pandemic Start
Several signs show that Americans are continuing to slowly recover from the financial effects of the global pandemic. In Nov. 2021, the most recent date for which statistics are available, home loan delinquencies dropped 2.3% year-over-year as compared to Nov. 2020.
The study from global property information, analytics and data-enabled provider CoreLogic showed that mortgages 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.
Similarly, foreclosure rates remain at historic lows, even after the government lifted the moratorium on foreclosures in the summer of 2021. Several states, including New York, kept foreclosure moratoriums in place through Jan. 2022.
However, the CoreLogic report 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.
Additionally, employment numbers continued to climb in 2021, further helping to rebuild income and help families get home loans back up to date. Dr. Frank Nothaft, chief economist at CoreLogic, said in a report on the firm’s website: “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.”
The states with the greatest change in home loan delinquency rates since Nov. 2020 are:
- New York.
Each of these states experienced a 2.1% or more drop in delinquency rates between Nov. 2020 and Nov. 2021.
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