Introduction
The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through November 2021.
Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more 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 level and includes transition rates between states of delinquency and separate breakouts for 120+ day delinquency.
“Nonfarm employment rose 6.45 million during 2021, helping to rebuild income for families under financial stress during the pandemic. Income growth has helped to reduce past-due rates and home equity build-up has reduced the likelihood of a distressed sale for families that experience financial challenges. ”
– Dr. Frank Nothaft
Chief Economist for CoreLogic
30 Days or More Delinquent – National
In November 2021, 3.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure.
This represents a 2.3-percentage point decrease in the overall delinquency rate compared with November 2020.
Finally Below March 2020 Level
For the first time since the onset of the pandemic, national overall delinquency dropped below the March 2020 level of 3.6%, a sign that mortgage performance is following the nation’s income growth. At the same time, foreclosure rates remain at historic lows as borrowers have been able to lean into the equity generated by a year of record-breaking home price growth. These factors combined have helped borrowers weather the lasting economic impacts brought on by the pandemic and avoid falling behind on payments or losing their homes.
Loan Performance – National
CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.
The nation’s overall delinquency rate for November was 3.6%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.2% in November 2021, down from 1.4% in November 2020. The share of mortgages 60 to 89 days past due was 0.3%, down from 0.6% in November 2020. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 2%, down from 3.9% in November 2020.
As of November 2021, the foreclosure inventory rate was 0.2%, down from 0.3% in November 2020.
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 0.6%, down from 0.8% in November 2020.
Overall Delinquency – State
Overall delinquency is defined as 30-days or more past due, including those in foreclosure.
In November 2021, all states logged year over year declines in their overall delinquency rate. The states with the largest declines were: Nevada (down 3.8 percentage points); New Jersey (down 3.6 percentage points); Hawaii (down 3.5 percentage points); Florida (down 3.4 percentage points); and New York (down 3.2 percentage points).
Serious Delinquency – Metropolitan Areas
Serious delinquency is defined as 90 days or more past due including loans in foreclosure.
There were 1 metropolitan areas where the Serious Delinquency Rate increased.
There were 383 metropolitan areas where the Serious Delinquency Rate remained the same or decreased.
Summary
Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more 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 Insights Blog: www.corelogic.com/insights.
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Methodology
The data in the CoreLogic Loan Performance Insights report represents foreclosure and delinquency activity reported through November 2021.
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
The data provided are for use only by the primary recipient or the primary recipient’s publication or broadcast. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipient’s parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Robin Wachner at [email protected]. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. The data are compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
About CoreLogic
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.
CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries.
Contact
For more information, please email Robin Wachner at [email protected]
