Loan Performance Insights – October 2023

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through August 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 performance remained strong in August, supported by a robust job market and a healthy economy. However, this thriving job market comes at a time when interest rates are quickly rising, which is keeping many potential homebuyers from being able to secure a mortgage.”

-Molly Boesel

Principal Economist for CoreLogic

30 Days or More Delinquent – National

In August 2023, 2.6% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.2 percentage point decrease in the overall delinquency rate compared with August 2022.

U.S. Serious Mortgage Delinquency Rate Drops to Lowest Level Since 1999

The share of U.S. mortgages that fell into serious delinquency — representing borrowers who are three months late on payments — dropped to the lowest level in nearly 25 years in August, at 0.9%. Nationwide, overall mortgage delinquencies (2.6%) and foreclosures (0.3%) also remained near historic lows, a clear sign that most U.S. homeowners can currently cover their monthly payments. But as interest rates have approached 8% in October, more prospective buyers could be sidelined, a factor that makes timing the housing market crucial to building long-term wealth.

Loan Performance – National

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

The nation’s overall delinquency rate for August was 2.6%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.3% in July August 2023, up from August 2022. The share of mortgages 60 to 89 days past due was 0.4%, up from August 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 August 2022.

As of August 2023, the foreclosure inventory rate was 0.3%, unchanged from August 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 0.6%, unchanged from August 2022.

Overall Delinquency – State

In August 2023, two states (Idaho and Utah) posted small year-over-year increases in overall delinquency rates, while four states were unchanged. The states with the largest 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 10 metropolitan areas where the serious delinquency rate stayed the same.

There were 371 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 August 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

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]. For sales inquiries, please visit https://www.corelogic.com/support/sales-contact/. 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 provider of property insights and innovative solutions, working to transform the property industry by putting people first. Using its network, scale, connectivity and technology, CoreLogic delivers faster, smarter, more human-centered experiences that build better relationships, strengthen businesses and ultimately create a more resilient society. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, CoreLogic LPI and CoreLogic LPI Forecast are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.