The percentage of homes with mortgages that have late payments or are in foreclosure has dropped to the lowest seen on record in more than two decades, according to CoreLogic\u2019s data dating back to 1999. The nation\u2019s overall delinquency dropped to 3.4% at the end of 2021, with the majority of states posting a year-over-year decrease in delinquencies, according to CoreLogic\u2019s newly released Loan Performance Insights report.<\/p>\n\n\n\n
Declining unemployment rates and higher home prices are helping more homeowners stay afloat. \u201cNational home prices increased by 18.5 percent year-over-year, helping more owners regain equity,\u201d Molly Boesel, principal and economist at CoreLogic, writes in the report. \u201cThe combination of these dynamics pushed the overall mortgage delinquency and foreclosure rates to the lowest levels that CoreLogic has recorded in more than two decades.\u201d<\/p>\n\n\n\n
The data also reflects a time when pandemic-related forbearance aid was put in place to help financially struggling homeowners, although for many owners it had expired by the end of the year. U.S. employment has been robust and home equity levels have been on the rise, both of which have helped keep homeowners from going under. Lenders also reportedly have been stricter when issuing loans during the pandemic, ensuring it was to borrowers who were unaffected by hardships.<\/p>\n\n\n\n
The majority of states saw a yearly decline in mortgage delinquencies, except for parts of Louisiana, which researchers attributed to damages from Hurricane Ida.<\/p>\n\n\n\n
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