CoreLogic: No US States Post Annual Mortgage Delinquency Increases in June
For the month of June, 2.6% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 0.3 percentage point decrease compared with 2.9% in June 2022 and unchanged from May 2023.
To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In June 2023, the U.S. delinquency and transition rates and their year-over-year changes, were as follows:
- Early-Stage Delinquencies (30 to 59 days past due): 1.3%, up from 1.2% in June 2022
- Adverse Delinquency (60 to 89 days past due): 0.4%, up from 0.3% in June 2022.
- Serious Delinquency (90 days or more past due, including loans in foreclosure): 1%, down from 1.3% in June 2022 and a high of 4.3% in August 2020.
- Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.3%, unchanged from June 2022.
- Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.7% in June 2022.
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.
“The national mortgage delinquency rate remained at a historic low in June,” said Molly Boesel, principal economist for CoreLogic. “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,” Boesel continued, “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.”
State and Metro Takeaways:
- No U.S. states posted year-over-year increases in overall mortgage delinquency rates in June. Annual delinquency rate decreases ranged from -0.9 and 0.0 percentage points from June 2022.
- In June, 31 U.S. metro areas posted an increase in overall year-over-year delinquency rates. The metros with the largest increases were Cape Coral-Fort Myers, Florida (up by 0.6 percentage points); Punta Gorda, Florida (up by 0.5 percentage points); and Yakima, Washington and Elkhart-Goshen, Indiana (both up by 0.3 percentage points).
- Three U.S. metro areas posted an increase in serious delinquency rates (defined as 90 days or more late on a mortgage payment) in June, while changes in other metros ranged from -1.6 percentage points to 0.0 percentage points. The metros that posted annual serious delinquency increases were Cape Coral-Fort Myers, Florida and Punta Gorda, Florida (both up by 0.5 percentage points) and Cheyenne, Wyoming (up by 0.1 percentage points).
The next CoreLogic Loan Performance Insights Report will be released on September 28, 2023, featuring data for July 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.
The data in The CoreLogic LPI 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. CoreLogic has approximately 75% coverage of U.S. foreclosure data.
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CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Source: CoreLogic, Inc.