Mortgage Delinquencies Rise Nationwide, But Not in Phoenix

By Angela Gonzales | Phoenix Business Journal

While mortgage delinquencies continue to rise nationwide, the rate is falling in metro Phoenix.

Borrowers continue to move through the delinquency funnel, with October 2020’s serious delinquency rate reaching over three times that of October 2019 nationwide, according to CoreLogic Inc.’s latest Loan Performance Insights report.

But in metro Phoenix, the overall delinquency rate was down to 4.5% in October, from a high of 5.3% in May 2020, but still up from 2.4% in October 2019, CoreLogic economist Molly Boesel said.

The delinquency rate in metro Phoenix is below the nation’s 6.1% for October 2020, she said.

“Compared with the height of the housing crisis, Phoenix mortgages are performing well,” Boesel said. “The overall delinquency rate for Phoenix reached 16.8% in January 2010 when 60% of mortgages were underwater in the Phoenix area. Negative equity in Phoenix was at a very low 2% at the end of the third quarter of 2020, which will help keep many homeowners from defaulting on their mortgages.”

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