Serious Delinquencies Improve, Foreclosure Starts Decline

April brought continued delinquency improvements, with serious delinquencies down to one of their best levels in nearly 20 years.

That’s according to new data from ICE, which showed that the national delinquency rate fell to 3.09% in April, the second-lowest level ever recorded. This is only bested by March 2023’s low of 2.92%, and a 22 bps improvement YOY.

Serious delinquencies (loans 90+ days past due but not in active foreclosure) fell to their lowest point since August 2005, down 4% from March and 16.8% YOY.

At the same time, the number of 30-day delinquencies slipped to an 8-month low, while 60-day delinquencies outperformed the last 10 months.

Foreclosure starts also declined 0.8% from March, leading to active foreclosures dipping 30% below their pre-pandemic levels.

Foreclosure sales did increase last month, up 1.5% nationwide, but they are still down about 50% from their pre-pandemic norms.

Commenting on trends in this area, ATTOM CEO Rob Barber noted that analysts are monitoring this data to better understand the current landscape.

“April’s foreclosure numbers highlight a mixed landscape in the U.S. housing market,” he said. “While there is a general downtrend in foreclosure starts and filings, we have also seen an increase in completed foreclosures. This mixed activity underscores the importance of closely monitoring these developments to understand the ongoing dynamics in the real estate market.”

For the most part, homeowners are shielded by record-high equity levels, giving struggling borrowers the opportunity to regroup and sell.

“House-rich” Americans have nearly $30 trillion in home equity, just below the peak reached in 2022.

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