The latest reading by CoreLogic found the number of mortgage delinquencies fell to a pandemic low at the end of November, yet the number of severe delinquencies make up a large portion of this share. Roughly 6% of all mortgages were in a stage of delinquency at the end of November, reports CNBC, which equals about 2.7 million homes. Just under 4% of these are considered seriously delinquent, with payments more than 90 days overdue. In 2019, only 1% of Americans were considered seriously delinquent on their mortgage payments.
“The consistent decline in serious delinquency since August is a sign of growing financial stability for families,” said Frank Martell, president and CEO of CoreLogic. “In addition to ensuring that homeowners stay in their homes, the decline in delinquency means fewer distressed sales, which is both a positive for individual households and the overall housing market.”
While the decline is certainly positive, the pandemic-driven distress in the mortgage market is far from over. The share of loans in government or private-sector mortgage bailout programs now appears to be stuck in place.