CoreLogic: Home Loan Performance Remains Strong and Steady in November

• Overall U.S. mortgage delinquency rates (2.9%) and serious delinquency rates (0.9%) remained near historic lows in November.
• The U.S. foreclosure rate held at 0.3% in November for the 21^st straight month, also near an all-time low.
• The Kahului-Wailuku-Lahaina, Hawaii metro area continued to see an annual increase in both overall and serious deliquency rates in in November due to the lingering effects of the August Maui wildfires.

IRVINE, Calif., January 25, 2024—CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for November 2023.

In November 2023, 2.9% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), unchanged from November 2022 and up by 0.1 percentage points from October 2023.

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In November 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): 1.5%, up from 1.4% in November 2022.
• Adverse Delinquency (60 to 89 days past due): 0.4%, unchanged from November
• 2022.
• Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, down from 1.2% in November 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 November 2022.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, unchanged from November 2022.

CoreLogic recorded very few upward movements in U.S. mortgage delinquency and foreclosure rates in November — a welcome trend, considering that all major rates remain at or near historic lows. The U.S. serious delinquency rate held at 0.9% for the fourth straight month, although more than 20 states posted numbers above the national average. Still, as noted in a recent CoreLogic analysis, a strong job market is enabling most borrowers with a mortgage to make payments on time, along with forbearance programs that help struggling homeowners temporarily suspend or modify their payment structures.

"U.S. job growth continued at a steady pace in the final quarter of 2023, and the unemployment rate ended the year just slightly higher than its 50-year low," said Molly Boesel, principal economist for CoreLogic. "The robust labor market is contributing to small mortgage delinquency numbers, with the overall delinquency rate remaining low and the serious delinquency rate at a record low. Mortgage performance should remain strong in 2024, as the job market is expected to remain healthy."

State and Metro Takeaways:

• Six states saw overall mortgage delinquency rates increase year over year in November. The states with the largest gains were Hawaii (up by 0.4 percentage points) and Idaho and Louisiana (both up by 0.2 percentage points). Sixteen states showed no change in overall delinquency rates year over year. The remaining states' annual delinquency rates declined between -0.4 percentage points and -0.1 percentage points.
• In November, 95 U.S. metro areas posted increases in overall year-over-year delinquency rates. The metro with the largest delinquency rate increase was Kahului-Wailuku-Lahaina, Hawaii (up by 3.2 percentage points), followed by Elkhart-Goshen, Indiana (up by 0.7 percentage points). Laredo, Texas; New Orleans-Metairie, Louisiana; Utica-Rome, New York and Valdosta, Georgia all saw overall mortgage delinquency rates increase by 0.5 percentage points.
• In November, four U.S. metro areas posted an annual increase in serious delinquency rates (defined as 90 days or more late on a mortgage payment), while 21 metros recorded no change. Declines in other metros ranged from -1.3 percentage points to -0.1 percentage points. The metros that posted annual serious delinquency increases were Kahului-Wailuku-Lahaina, Hawaii (up by 2.2 percentage points); and Carson City, Nevada; Punta Gorda, Florida and Yakima, Washington (all up by 0.1 percentage points).

The next CoreLogic Loan Performance Insights Report will be released on February 29, 2024, featuring data for December 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

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Methodology

The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through November 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.

Source: CoreLogic

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