Loan Performance Insights – March 2023

Introduction

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

“The share of home loans in delinquency continues to decline, down from a high of 7.3% in the spring of 2020 and down by 0.5 percentage points from January 2022. The annual decrease in overall delinquencies was primarily driven by a large decline in the share of mortgages six months or more past due. Despite the drop in overall delinquencies, the foreclosure rate has slowly crept up. Although it remains near an all-time low, about 30,000 more U.S. homeowners are now involved in the foreclosure process.”

-Molly Boesel

Principal Economist for CoreLogic

30 Days or More Delinquent – National

In January 2023, 2.8% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.5 percentage point decrease in the overall delinquency rate compared with January 2022.

Mortgage Delinquencies, Foreclosures Remain Near All-Time Lows in Early 2023

U.S. mortgage performance barely moved in January, with overall delinquency and foreclosure numbers hovering near historic lows. Although annual home equity gains slowed significantly in the fourth quarter of 2022, the average borrower still has about $270,000 in equity, which can safeguard against foreclosure. Additionally, although layoffs at some-high profile technology companies have recently made headlines, the U.S. unemployment rate remained at less than 4% in the first two months of 2023.

Loan Performance – National

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

The nation’s overall delinquency rate for January was 2.8%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.3% in January 2023, up slightly from January 2022. The share of mortgages 60 to 89 days past due was 0.4%, also up from January 2022. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was  1.2% down from 1.8% in January 2022.

As of January 2023, the foreclosure inventory rate was 0.3%, up slightly from January 2022 but still near an all-time low.

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 January 2022.

Overall Delinquency – State

Overall delinquency is defined as 30 days or more past due including loans in foreclosure.

In January 2023, no state posted a year-over-year increase in its overall delinquency rate. The states and districts with the largest delinquency declines were  Alaska, New York and Washington, D.C. (all 1 percentage point).

Serious Delinquency – Metropolitan Areas

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

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

There were 382 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 Insights Blog: www.corelogic.com/insights.

Methodology

The data in this report represents foreclosure and delinquency activity reported through January 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

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