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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.
Chart 1: Overall U.S. mortgage delinquency rate and year-over-year change, April 2023
“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
Chart 2: Overall U.S. mortgage delinquency rate by select state and year-over-year change, April 2023
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.
Chart 3: U.S. mortgage delinquency rates by time frame and year-over-year change, April 2023
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.
Chart 4: Share of delinquent mortgages transitioning from one stage to the next and year-over-year change, April 2023
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%).
Chart 5: Year-over-year change in overall mortgage delinquency rate by all states and districts, April 2023
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.
Chart 6: Year-over-year change in serious mortgage delinquency rate by metro area, April 2023
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.
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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