Mortgage Delinquencies Hit 12-month Low as Foreclosure Starts Spike
By Elizabeth Stewart @ Real Estate Daily
April 30, 2018

Nationally, mortgage delinquencies hit their lowest point all year on the back of hurricane-related improvements. Serious delinquencies dropped by almost 10% in March, and nearly a third of that decrease was from the 19,500 fewer delinquencies attributable to Harvey and Irma.

The national delinquency rate showed exceptional improvement in March, in large part due to less hurricane-related delinquencies. Unfortunately, a spike in foreclosure starts offset the improvement in the delinquency rate. Texas and Florida, two states with severe hurricane damage, accounted for two-thirds of the foreclosure spike in March.

Key Takeaways

  • The national delinquency rate improved 13.24% month-over-month in March
  • Serious delinquencies dropped by 65,000 to 632,000 in March; about 19,500 were hurricane-related
  • Foreclosure starts increased by 12% in March; about two-thirds of new starts were in Texas and Florida

Excerpt

The national delinquency rate improved 13.24% in March due to seasonal effects and continued hurricane-related improvements, according to the latest Black Knight report. Annually, the delinquency rate increased by 3.09%.

Serious delinquencies, delinquencies that are 90 days or more past due but not in foreclosure, fell by 65,000 to 632,000 March. This monthly decrease was due, in part, from the decrease of 19,500 serious delinquencies attributable to hurricanes Harvey and Irma.

However, this may not reflect that hurricane areas are getting better, in fact, it could mean they’re getting worse. Foreclosure starts increased by 12% in March, of which more than two-thirds came from hurricane-affected areas of Texas and Florida.

View the original article at Housing Wire