In its latest MarketPulse report, CoreLogic illuminated the silver lining of the strict lending standards that many housing observers say have hampered a recovery: the “flawless” performance of new mortgages.
The share of mortgages originated in 2013 that were at least 90 days delinquent was only 0.6 percent through the first six months of 2013, foreshadowing a vast improvement over 2007, when the “serious delinquency rate” through the entire year hit its recent peak of 1.08 percent.
“… The most recent mortgage vintages are pristine relative to even the good-performing years of the early 2000s,” the report said.
The overall delinquency rate — the share of all mortgages (not just those originated in 2013) that are at least 90 says delinquent — has also improved substantially from its 2010 peak. The rate was 5.4 percent in July of this year, down from a recent peak of 8.5 percent in January 2010, CoreLogic said.
Nonetheless, the current serious delinquency rate is still much higher than the normal 1 or 2 percent rate seen in the early 2000s, CoreLogic reported.