Loan Performance Insights – February 2024

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through December 2023.

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.

“Early-stage mortgage delinquency rates increased in December 2023 from one year earlier but remained near historic lows. There were offsetting declines of home loans that were six months or more past due, which led to a drop in the serious delinquency rate. However, other types of consumer credit showed increases in serious delinquency rates at the end of 2023. The Federal Reserve reports that the number of credit-card and automobile-loan transitions moving into serious delinquency were above pre-pandemic levels, which could be a signal of increased financial stress for some Americans.”

-Molly Boesel

Principal Economist for CoreLogic

30 Days or More Delinquent – National

In December 2023, 3.1% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.1 percentage point change in the overall delinquency rate compared with December 2022.

Mortgage Performance Ends 2023 on a Calm Note

Although the overall U.S. mortgage delinquency rate ticked up slightly in December from the previous few months, it remained low by historical standards. Similarly, 17 states posted annual overall delinquency rate increases, but these gains were all less than one-half of a percentage point. Despite continued healthy mortgage performance, other expenses could squeeze some homeowners’ budgets in the coming months.

Loan Performance – National

CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.

The nation’s overall delinquency rate for December was 3.1%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.6% in December 2023, up from December 2022. The share of mortgages 60 to 89 days past due was 0.5%, up from December 2022. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was  1%, down from 1.2% in December 2022.

As of December 2023, the foreclosure inventory rate was 0.3%, unchanged from December 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 0.9%, up from December 2022.

Overall Delinquency – State

In December 2023, 17 states posted year-over-year increases in overall delinquency rates, while 15 states were unchanged. The states with the largest annual declines were Alaska and Oklahoma.

Serious Delinquency – Metropolitan Areas

Serious delinquency is defined as 90 days or more past due including loans in foreclosure.

There were three metropolitan areas where the Serious Delinquency Rate increased.

There were 31 metropolitan areaswhere the Serious Delinquency Rate stayed the same.

There were 350 metropolitan areas where the Serious Delinquency Rate 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 Intelligence Blog: www.corelogic.com/insights.

Methodology

The data in this report represents foreclosure and delinquency activity reported through December 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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About CoreLogic

CoreLogic, the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit www.corelogic.com.

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Media Contact

Robin Wachner
CoreLogic
[email protected]

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