Loan Performance Insights – June 2023

Introduction

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

Measuring delinquency rates is important for analyzing the health of the mortgage market. To 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 levels.

“Mortgage performance remained strong in April, with overall delinquencies at minimal levels and serious delinquencies at a 23-year low. However, there is concern that mortgages originated in a rising-interest-rate environment may have higher instances of delinquencies, as borrowers become stretched financially. While early delinquencies for 2022 mortgage originations are about the same rate as those in other rising interest-rate environments, loans with low down payments are exhibiting comparably higher-than-usual early delinquencies.”

-Molly Boesel

Principal Economist for CoreLogic

30 Days or More Delinquent – National

In April 2023, 2.8% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.1 percentage point decrease in the overall delinquency rate compared with April 2022.

Mortgage Delinquency and Foreclosure Rates Remain Near Historic Lows in April

Although almost a dozen states and more than 150 metro areas posted year-over-year increases in overall mortgage delinquency rates in April, U.S. loan performance remains resilient, with delinquencies and foreclosures continuing to hover near record lows. The national overall delinquency rate increased slightly from March to April, but this is a typical seasonal pattern, as tax bills can stretch homeowners’ budgets in the short term and result in late mortgage payments for some borrowers.

Loan Performance – National

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

The nation’s overall delinquency rate for April was 2.8%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.4% in April 2023, up from April 2022. The share of mortgages 60 to 89 days past due was 0.4%, up from April 2022. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was  1.1% down from 1.4% in April 2022.

As of April 2023, the foreclosure inventory rate was 0.3%, unchanged from April 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 0.8%, up from April 2022.

Overall Delinquency – State

Overall delinquency is defined as 30 days or more past due including loans in foreclosure.

In April 2023, 11 states posted year-over-year increases in overall delinquency rates, while 11 states were unchanged. The states with the largest declines were Alaska (-0.7%), Hawaii (-0.5%) and New York (-0.4%).

Serious Delinquency – Metropolitan Areas

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

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

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

There were 375 metropolitan areas where the Serious Delinquency Rate decreased. 

Summary

Measuring delinquency rates is important for analyzing the health of the mortgage market. To 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: https://stage.corelogic.com/intelligence/.

Methodology

The data in this report represents foreclosure and delinquency activity reported through April 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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About CoreLogic

CoreLogic, the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit stage.corelogic.com.

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