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Fewer Americans are falling behind on their mortgage payments. While “late-stage” delinquencies still persist in some markets, early-stage mortgage delinquency performance is vastly improving. And, according to a new report from CoreLogic, the percentage of mortgages 30 days or more late was at a 10-year low in January 2017.

The rate with which Americans are falling behind on mortgage payments by 30 days or more is rapidly declining, says CoreLogic. In January, the number of mortgages that were 30 days late or more fell to 5.3 percent year-over-year.

The “30-days plus” delinquency rate is “the most comprehensive measure of mortgage performance,” said CoreLogic President and CEO Frank Nothaft.

January’s transition rate on current to 30-days past due mortgages fell to 0.9 percent from the 1.2 percent recorded last year. Transition rates are the percentage of mortgages moving from one stage to another, for example from 30-days late to 90-days late. Declines in current to 30 days transition rates show more mortgage holders are paying on time.

Back in January 2007, just prior to the start of the national financial crisis, the current to 30-day transition rate was 1.2 percent. It peaked in November 2008 at 2 percent.

The 30-days to 60-days delinquent transition rate dropped from last year’s 18.5 percent to 15.4 percent in January 2017. The 60-days to 90-days transition rate declined to 26.8 percent in January from nearly 30 percent the year before.

The declines in transition rates bodes well for the health of the US market in the coming year, Nothaft noted.

The percentage of mortgages in foreclosure was 0.8 percent in January, down from the 1.1 percent in January 2016.

Nationwide, serious delinquency rates went up in Alaska and Wyoming, and remained the same in Louisiana and North Dakota in January. Every other state recorded a decrease in the serious delinquency rate. Serious delinquency is defined as 90-days or more past due, including foreclosures.

“Steady job and income growth, combined with full-doc underwriting, has led to low early-stage delinquencies,” Nothaft said.

He added that January’s transition rate for current to 30 days late is lower than a year ago and much lower than the average from 2000 and 2001 — when the foreclosure rate was, conversely, lower than it is now.

Click here to read the entire report.

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