As the economy booms with steady job growth, and the housing market thrives save some inventory issues, across most of the U.S., mortgage delinquency rates — or the percentage of loans with late payments — sit at a 10-year low, according to the latest CoreLogic Loan Performance Insights Report.

The report measured 30-day or more delinquency rates for January 2018 at 4.9 percent, down from 5.1 percent the year prior, a 0.2 percentage point decline.

But in areas struck by hurricanes in 2017 — and in some Northern California metros impacted by wildfires last year — serious delinquency rates, representing mortgages that are over 90 days past due, remain higher than the rest of the country.

“The areas hit by last year’s hurricanes and wildfires are experiencing the ‘pig in a python’ effect on their local delinquency rates,” said CoreLogic chief economist, Frank Nothaft, in the report. “Early-stage delinquencies have largely dropped back to normal, while serious delinquency remains elevated. In hard-hit markets, like the Houston and Naples metro areas, serious delinquency is triple what it was before the hurricanes. And in the San Juan area of Puerto Rico, serious delinquency has quadrupled.”

 

Credit: CoreLogic Loan Performance Insights Report (Orange represents an increase in serious delinquencies; blue represents areas where serious delinquencies remained the same; and green represents areas where the serious delinquency rate dropped.)

CoreLogic’s research identified 31 metros where the serious delinquency rate increased (represented in orange above).

The company said that after disaster strikes, homeowners are considering a number of options that may lead to them delay their mortgage payments.

Making a mortgage payment on a home that is temporarily uninhabitable coupled with the expense of a rental “can be overwhelming” if not budgeted for properly by the homeowner, said the company in an email to Inman.

But for the rest of the country, the 30-day or more delinquency rates, the most comprehensive measure of mortgage performance, boded well for a healthy U.S. market.

“Except for the metropolitan areas affected by natural disasters, most of the country has seen delinquency and foreclosure rates move lower over the past year,” said CoreLogic president and CEO, Frank Martell, in the report.

The rest of the country is reaping the benefits of low unemployment, rises in income and home price growth which is building home equity, he said.

“These two economic forces coupled with high-quality underwriting have lowered overall delinquency rates,” Martell said.

Email Gill South.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×