Mortgage delinquencies jumped to highest rate in 20 years

July late payments spiked in Miami and New York, according to CoreLogic report

National /
Oct.October 13, 2020 05:35 PM
A new report by CoreLogic showed mortgage payments that are over 120 days delinquent rose to 1.4 percent in July, its highest level since 1999 (iStock)

A new report by CoreLogic showed mortgage payments that are over 120 days delinquent rose to 1.4 percent in July, its highest level since 1999 (iStock)

The coronavirus has managed to send the U.S. housing market surging in opposite directions simultaneously.

On one end, demand for new mortgages and homes is surging as buyers look to take advantage of rock-bottom interest rates and eager sellers.

On the other end, homeowners across the country are struggling amid the upended economy, and can’t make their loan payments.

Late-stage mortgage delinquencies rose to 1.4 percent among borrowers in July, the highest level since 1999, according to a new report from CoreLogic. The July numbers represent the latest available data and stand in contrast to pre-Covid March, when late-stage delinquencies — 120 days or more — stood at just 0.1 percent.

“Many homeowners are beginning to feel the compounding pressures of unstable income and debt on personal savings buffers, creating heightened risk of falling behind on their mortgages,” said Frank Martell, president and CEO of CoreLogic in a statement.

Miami, which was one of the epicenters of the housing crisis in 2008, reported one of the highest rates of mortgage delinquencies in July. In Miami, payments that were more than 30 days late rose to 12.1 percent, up from 5 percent in July 2019. Mortgages that were more than 90 days delinquent in Miami totaled 8.4 percent in July, up from 2 percent year over year.

New York City also recorded one of the highest delinquency rates in July. Mortgages with delinquencies over 30 days totaled 10.5 percent, compared to 5 percent in July 2019. Mortgages that were more than 90 days late rose to 7.5 percent in New York, up from 2.5 percent a year ago.

And in Los Angeles, mortgage delinquencies over 30 days totaled 6.3 percent, up from 2.3 percent year over year; delinquencies of more than 90 days totaled 4.1 percent, up from 0.6 percent in July 2019.

Nationwide, all states saw increases in delinquency rates of 30 days or more and 90 days or more because of the pandemic, the data shows. States that reported the highest rates included Florida and New York, along with New Jersey and Nevada.

Many state governments and federal agencies have enacted moratoriums on evictions and foreclosures, preventing foreclosures from happening even as delinquencies increase. A foreclosure moratorium on home mortgages backed by Fannie Mae and Freddie Mac extends through December.


Related Articles

arrow_forward_ios
The total supply of single-family homes declined 40 percent to 3.3 months in October (iStock)

Single-family home sales dip in October, but up 41% from last year

Single-family home sales dip in October, but up 41% from last year
(iStock)

Mortgage requests surge ahead of Thanksgiving

Mortgage requests surge ahead of Thanksgiving
Prices increased 6.6 percent year-over-year in September (iStock)

US home prices surged 6.6% in September

US home prices surged 6.6% in September
A recent study that found 1 in 10 Black homeowners returned to renting between 1984 and 2017 (iStock)

Black homeowners twice as likely to lose homes and return to renting: Report

Black homeowners twice as likely to lose homes and return to renting: Report
(iStock)

US home sales rose again as inventory hit all-time low

US home sales rose again as inventory hit all-time low
Federal Reserve chairman Jerome Powell (Getty; iStock)

Mortgage originations at 2nd highest level in 20 years: Fed

Mortgage originations at 2nd highest level in 20 years: Fed
Housing starts rose almost 5% last month

Housing starts rose almost 5% last month

Housing starts rose almost 5% last month
The increase put an end to the “recent slump” that gripped the purchase market over the past seven weeks (iStock)

Over the slump? Home-purchase mortgages jump

Over the slump? Home-purchase mortgages jump
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...