Tri-Cities mortgage rates are no longer at record lows, but delinquent mortgages and foreclosure filings are. But that could change during the second quarter, according to Rick Sharga, executive vice president of market intelligence for Attom Data Solutions.

There were 35 new local filings last month, down from the March total of 48, according to Attom. The current foreclosure rate for the region’s two metro areas is unchanged from last year. Kingsport-Bristol metro area is 0.2%, and Johnson City is 0.1%, according to CoreLogic. Both are about half of their historical levels.

The Kingsport-Bristol 30-day or more mortgage delinquency rate is 3.9%, down from 5.7% last year. And the serious delinquency rate is 1.8%, down from 3.6%.

The Johnson City metro area’s 30-day or more delinquency rate is 3.1%, down from 5%, and the serious delinquency rate is 1.3%, down from 3%.

Local delinquency rates align with the national trend. They have declined for the last 11 months.

“While job and income gains have helped push delinquency rates lower, some families continue to face financial stress,” said CoreLogic chief economist Dr. Frank Nothaft. “One-half of the borrowers who are seriously delinquent are behind on their payments by six or more months. Even though this group has been declining, the number that have missed at least six-monthly payments is still double what it was in the months immediately prior to the pandemic.”

Big equity gains amassed during the pandemic are helping local mortgage owners who are in trouble. “Record levels of homeowner equity should provide financially distressed homeowners the opportunity to sell their homes prior to a foreclosure auction, meaning we should continue to see fewer foreclosure completions. While it may take several months to determine if this is actually what’s happening, it seems like a real possibility in today’s low supply/high demand housing market,” Sharga said.

Categories: REAL ESTATE