Loan Performance Insights – August 2023

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through June 2023.

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

The report is published monthly with coverage at the national, state and Core Based Statistical Area (CBSA)/Metro level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.

“The national mortgage delinquency rate remained at a historic low in June. In addition, fewer states and metro areas posted annual increases in overall delinquency rates compared with May.While June’s data does not reflect the most recent U.S. natural catastrophes, it is typical to see mortgage delinquencies increase about one month following disasters. Delinquency rates in these areas often remain elevated for months, progressing from early stage to serious. For example, two Florida Gulf Coast communities continued to post annual increases in serious delinquency rates in June, nine months after the property damage from Hurricane Ian in September 2022.”

-Molly Boesel

Principal Economist for CoreLogic

30 Days or More Delinquent – National

In June 2023, 2.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.3 percentage point decrease in the overall delinquency rate compared with June 2022.

Mortgage Delinquency, Foreclosure Rates Remain Near All-Time Lows in June

U.S. mortgage performance remained exceptionally strong in June, with both overall delinquency and foreclosure rates at or near historic lows. Far fewer states and metro areas posted year-over-year delinquency increases than recorded earlier in the spring, indicating that both the employment situation and mortgage performance are on a solid track for the rest of 2023.

Loan Performance – National

CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.

The nation’s overall delinquency rate for June was 2.6%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.3% in June 2023, up from June 2022. The share of mortgages 60 to 89 days past due was 0.4%, up from June 2022. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was  1% down from 1.3% in June 2022.

As of June 2023, the foreclosure inventory rate was 0.3%, unchanged from June 2022.

Transition Rates – National

CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

The share of mortgages that transitioned from current to 30-days past due was 0.6%, slightly down from June 2022.

Overall Delinquency – State

In June 2023, no state posted a year-over-year increases in its overall delinquency rate, while three states were unchanged. The states and districts with the largest declines were Alaska, West Virginia and New York.

Serious Delinquency – Metropolitan Areas

Serious delinquency is defined as 90 days or more past due including loans in foreclosure.

There were three metropolitan areas where the Serious Delinquency Rate increased.

There were eight metropolitan areas where the Serious Delinquency Rate stayed the same.

There were 373 metropolitan areas where the Serious Delinquency Rate decreased. 

Summary

Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

For ongoing housing trends and data, visit the CoreLogic Intelligence blog.

Methodology

The data in this report represents foreclosure and delinquency activity reported through June 2023. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 75% coverage of U.S. foreclosure data.

Source: CoreLogic

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