CoreLogic: Mortgage Delinquencies Remain Near Record Low in July

(Image courtesy of CoreLogic)

CoreLogic, Irvine, Calif., released its Loan Performance Insights through July, revealing strong performance–overall delinquencies were 2.7%, still near a record low.

The 2.7% of loans in some sort of delinquency was up slightly (0.1% from June) but down from 3% in July 2022.

“Overall U.S. mortgage delinquencies remained near a record low in July, with the share of homes entering that status or progressing to later stages either unchanged or lower. Since most borrowers have substantial amounts of home equity, those who have locked in low mortgage rates that do enter later stages of delinquency will most likely not experience foreclosures,” Molly Boesel, Principal Economist for CoreLogic, said. “And while home equity gains have slowed from their former rapid pace, CoreLogic projects that home price growth will pick up over the next year. Borrowers should continue to build equity over the coming months, even if at a more moderate rate.”

In terms of stages of delinquency:

• Early stage delinquencies, defined as 30-59 days past due: 1.3%, flat from July 2022
• Adverse delinquencies, defined as 60-89 days past due: 0.4%, unchanged from July 2022
• Serious delinquencies, defined as 90 days or more past due, including foreclosures: 1%, down from 1.3% in July 2022
• Foreclosure inventory rate, or the share of mortgages in some state of foreclosure: 0.3%, unchanged from July 2022
• Transition rate, or the share of mortgages that went from current to 30 days past due: 0.7%, unchanged from July 2022

Only one state–Idaho–reported an annual increase (0.1 percentage point) in overall mortgage delinquency rates.

Sixteen U.S. metro areas reported year-over-year increases in delinquency rates. The largest increases were in Elhart-Goshen, Ind., up by 0.5 percentage point, Punta Gorda, Fla., up by 0.5 percentage point, and Cape Coral-Fort Myers, Fla., up by 0.3 percentage point.

Only two metro areas posted an increase in serious delinquency rates: Cape Coral-Fort Myers, Fla., and Punta Gorda, Fla., were both up by 0.4 percentage point.