The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through July 2022.
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 delinquencies are showing a small but clear increasing trend on a month-over-month and year-over-year basis. While the share of mortgages that are 30 to 89 days past due remains below the pre-pandemic level, the slight increase is occurring in most areas of the country and could indicate that more borrowers are having trouble making their monthly payments.”
In July 2022, 3% of mortgages were delinquent by at least 30 days or more including those in foreclosure.
This represents a 1.2 percentage point decrease in the overall delinquency rate compared with July 2021.
Mortgage Delinquencies Down for 16th Consecutive Month on Annual Basis
Although overall U.S. mortgage delinquencies crept up again in July from earlier in 2022, they declined for the 16th straight month year over year and remained near historic lows. The national foreclosure rate has held steady at 0.3% since March but rose by 0.1 percentage point from July 2021. This slight bump mirrors metro-level trends, with almost two-thirds of areas that CoreLogic tracks posting small annual foreclosure gains. The minor uptick in foreclosures may be due to mortgage forbearance periods and moratoriums ending for some homeowners, while the increase in delinquencies could indicate that inflation is negatively impacting others’ abilities to make monthly payments.
Loan Performance – National
CoreLogic examines all stages of delinquency to more comprehensively monitor mortgage performance.
The nation’s overall delinquency rate for July was 3%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.3% in July 2022, up from July 2021. The share of mortgages 60 to 89 days past due was 0.4%, up from July 2021. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.3%, down from 2.8% in July 2021.
As of July 2022, the foreclosure inventory rate was 0.3%, up from July 2021.
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%, up from July 2021.
Overall Delinquency – State
Overall delinquency is defined as 30-days or more past due, including those in foreclosure.
In July 2022, all states logged year-over-year declines in their overall delinquency rates. The states with the largest declines were Hawaii and Nevada (both down 2.3 percentage points), New Jersey (down 2.1 percentage points) and New York (down 2.0 percentage points).
Serious Delinquency – Metropolitan Areas
Serious delinquency is defined as 90 days or more past due including loans in foreclosure.
There were no metropolitan areas where the Serious Delinquency Rate increased.
There were 384 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.
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Methodology
The data in the CoreLogic Loan Performance Insights report represents foreclosure and delinquency activity reported through July 2022. 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 is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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Contact
For more information, please email Robin Wachner at newsmedia@corelogic.com
