Loan Performance Insights – January 2024

Introduction

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

“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. 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.”

– Molly Boesel

Principal Economist for CoreLogic

30 Days or More Delinquent – National

In October 2023, 2.8% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.0 percentage point change in the overall delinquency rate compared with October 2022.

Mortgage Performance Holds Strong Again in October

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.

Loan Performance – National

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

The nation’s overall delinquency rate for October was 2.8%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.4% in October 2023, up from October 2022. The share of mortgages 60 to 89 days past due was 0.4%, unchanged from October 2022. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was  0.9%, down from 1.2% in October 2022.

As of October 2023, the foreclosure inventory rate was 0.3%, unchanged from October 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 0.7%, unchanged from October 2022.

Overall Delinquency – State

In October 2023, nine states posted small year-over-year increases in overall delinquency rates, while 15 states were unchanged. The states with the largest annual declines were Alaska and West Virginia.

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 28 metropolitan areas where the serious delinquency rate stayed the same.

There were 353 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 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. 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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