CoreLogic: US Serious Mortgage Delinquency Rate Remained at All-Time Low in October

• Less than 1% of U.S. homeowners with a mortgage were 90 days or more late on payments in October.
• The nation's overall mortgage delinquency rate was 2.8%, unchanged on both on a yearly and monthly basis.
• The overall U.S. mortgage delinquency rate has held at less than 3% since February 2023.
• Nine states saw overall mortgage delinquencies increase year over year in October, ranging from 0.5 percentage points to 0.1 percentage points.
• The national foreclosure rate was 0.3% in October, unchanged since March 2022 and still near a historic low.

IRVINE, Calif., January 4, 2024—CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for October 2023.

In October 2023, 2.8% 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 both October 2022 and September 2023.

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In October 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): 1.4%, up from 1.3% in October 2022.
• Adverse Delinquency (60 to 89 days past due): 0.4%, unchanged from October 2022.
• Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, down from 1.2% in October 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 October 2022.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, unchanged from October 2022.

U.S. mortgage performance was again exceptionally solid in October, with overall delinquency, serious delinquency and foreclosure rates all continuing to hold near or at all-time lows. The nation's serious delinquency rate remained at 0.9%, while the 0.3% foreclosure rate has not moved since the spring of 2022. Home equity gains again rebounded in the third quarter, with the average borrower earning $20,000 year over year, a trend that should help keep most borrowers from experiencing foreclosure in the coming months.

"U.S. mortgage delinquency rates remained healthy in October, with the overall delinquency rate unchanged from a year earlier and the serious delinquency rate remaining at a historic low," said Molly Boesel, principal economist for CoreLogic. "Most of the decline in the serious delinquency rate stems from a decrease in later-stage delinquencies. Importantly, there was no increase in the foreclosure rate, indicating that borrowers in later stages of delinquencies are finding alternatives to defaulting on their home loans."

State and Metro Takeaways:

• Nine states saw overall mortgage delinquency rates increase year over year in October. The states with the largest gains were Hawaii (up by 0.5 percentage points) and Idaho (up by 0.2 percentage points). Georgia, Louisiana, Mississippi, Oregon, South Dakota, Utah and Washington posted annual delinquency gains of 0.1 percentage points. Fifteen 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 October, 97 U.S. metro areas posted increases in overall year-over-year delinquency rates. The metro with the largest increase was Kahului-Wailuku-Lahaina, Hawaii (up by 3.8 percentage points). Elkhart-Goshen, Indiana; Hammond, Louisiana; Jackson, Michigan; Laredo, Texas and Valdosta, Georgia followed, all with 0.5 percentage point annual increases.
• In October, three U.S. metro areas posted an annual increase in serious delinquency rates (defined as 90 days or more late on a mortgage payment), while 28 metros recorded no change. Declines in other metros ranged from -1.2 percentage points to -0.1 percentage points. The metros that posted annual serious delinquency increases were Kahului-Wailuku-Lahaina, Hawaii (up by 0.3 percentage points); Punta, Gorda, Florida (up by 0.2 percentage points) and Cape Coral-Fort Myers, Florida (up by 0.1 percentage points).

The next CoreLogic Loan Performance Insights Report will be released on January 25, 2024, featuring data for November 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 October 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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