The number of homeowners failing to make mortgage payments has dipped to levels unseen since before the 2008 housing crisis.
Nationwide, only 4.1 percent of homeowners were delinquent on their mortgage in December, according to CoreLogic’s latest Loan Performance Insights report released Tuesday. Down from 5.3 percent in December 2017, the latest rate is the lowest since January 2000.
Yearlong delinquency rates, which have been falling steadily since the start of 2018, have not been this low since early 2006 – just before the housing and financial crisis of 2008-2009.
Foreclosures, in which property is seized due to an owner’s inability to pay, fell to 0.4 percent from 0.6 percent the year before.
“Our latest home equity report found that the average homeowner saw a $9,700 increase in their equity during 2018,” said Dr. Frank Nothaft, chief economist for CoreLogic, in a prepared statement. “With additional ‘skin in the game,’ rising equity reduces the chances of a foreclosure, helping to push the foreclosure rate down to its lowest level since at least 2000.”