Squeezed household budgets may be forcing some American homeowners to tap savings accounts for their monthly mortgage payments but it’s helping maintain low delinquency rates.
Keeping a roof over their heads and ensuring that their largest asset is protected means that the U.S. overall mortgage delinquency (2.8%), adverse delinquency (0.4%), foreclosure (0.3%) and transition rates (0.7%) were all essentially unchanged in February compared to a year earlier.
Data from CoreLogic’s Loan Performance Insights Report shows that the stats are around historic lows and that with a $1.3 trillion increase in home equity year-over-year in the third quarter of 2023, there should be enough in the tank to protect most homeowners from foreclosure.
“The U.S. delinquency rate fell from a year earlier for the first time in six months in February, indicating that mortgage performance remains strong,” said Molly Boesel, principal economist for CoreLogic. “The decrease in delinquencies was driven by the decline in the share of mortgages that were six months or more past due, a number that has been consistently shrinking and fell to its lowest level in 15 years in February. As later-stage delinquencies decrease, the share of mortgages in foreclosure remained at 0.3% in February, where it has been since March 2022 and only slightly higher than the all-time low.”
However, the report highlights the areas where things are not quite so rosy. Overall delinquency rates increased year-over-year in February in 56 U.S. metro areas, led by Kahului-Wailuku-Lahaina, Hawaii (up by 1.6 percentage points), followed by Hinesville, Georgia and New Orleans-Metairie, Louisiana (both up by 0.4 percentage points).
While those already owning a home appear to be managing for now, those trying to get on the housing ladder continue to find the barriers rising.
Recent research found that that the average down payment in 2023 reached an all-time high of $84,000 or 16% of the purchase price.
Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.
Reshuffle provides strong indication of where the regulator's priorities now lie.
Goldman Sachs Asset Management report reveals sharpened focus on annuities.
Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.
Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
