In October, 3.8% of all mortgages in the U.S. were in some stage of delinquency, according to CoreLogic’s monthly Loan Performance Insights Report for October 2021. This represents a 2.3-percentage point decrease compared to October 2020’s rate of 6.1%.

In October 2021, researchers at CoreLogic found: 

  • Early-stage delinquencies (30 to 59 days past due) at 1.2%, down from 1.4% in October 2020
  • Adverse delinquencies (60 to 89 days past due) at 0.3%, down from 0.6% in October 2020
  • Serious delinquencies (90 days or more past due, including loans in foreclosure) at 2.2%, down from 4.1% in October 2020.

The foreclosure inventory rate (the share of mortgages in some stage of the foreclosure process) was 0.2%, down from 0.3% in October 2020. This remains the lowest foreclosure rate recorded since 1999.

“Improving economic security and the benefits of disciplined underwriting practices over the past decade are helping reduce or avoid mortgage delinquencies,” said Frank Martell, president and CEO of CoreLogic. “We expect to see delinquency trend down over the balance of this year as the economy continues to rebound from the pandemic, employment grows and high levels of fiscal and monetary stimulus continues.”

After over a year of trying conditions for borrowers, unemployment rates mark an improvement as data from the Bureau of Labor Statistics shows that by October 2021 an estimated 82% of the jobs lost in March and April 2020 were recovered, which translates to roughly 18.2 million Americans back at work.

“Economic recovery and loan modification have helped reduce the number of loans that were in serious delinquency by just over one million from the August 2021 peak,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Nonetheless, there were about one-half million more loans in serious delinquency in October than at the start of the pandemic in March 2020.”

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