Mortgage Delinquency Data Update – DSNews

CoreLogic released the latest iteration of its monthly Loan Performance Report for May 2022.

According to CoreLogic, the total delinquency rate fell to 2.7% of all loans, reflecting all loans that were at some stage of delinquency. This represents a decrease of 2 percentage points from May 2021, when the delinquency rate was 4.7%.

To get a complete view of the mortgage market and the health of loan performance, CoreLogic examines all stages of delinquency. In May 2022, default and transition rates in the United States, and their year-over-year changes, were as follows:

  • Early delinquencies (30 to 59 days overdue): 1.1%, compared to 1.2% in May 2021.
  • Adverse delinquency (60 to 89 days past due): 0.3%, unchanged compared to May 2021.
  • Serious delinquency (90 days or more past due, including loans in foreclosure): 1.3%, compared to 3.2% in May 2021 and a peak of 4.3% in August 2020.
  • Foreclosure inventory rate (the share of mortgages at one stage of the foreclosure process): 0.3%, unchanged compared to May 2021.
  • Transition rate (the share of mortgages that went from current to 30 days past due): 0.6%, compared to 0.7% in May 2021.

This marks the 14e consecutive month on an annual basis, the delinquency rate has decreased. At its current rate, it is at the lowest level since January 1999. The national foreclosure rate has remained stable year-on-year and month-on-month, but has experienced a slight increase in March. As in previous months, rising house prices and the resulting equity accumulation helped keep foreclosure rates low in May, year-over-year appreciation exceeding 20% ​​this spring.

“Early states mortgage delinquencies are at a generational low, supported by a strong labor market,” said Molly Boesel, Senior Economist at CoreLogic. “Furthermore, serious delinquencies have declined to their level at the start of 2020. Although the rate of foreclosures remains low, around half of serious delinquencies come from mortgages that are six months or more in arrears. This suggests that there could be small increases in the rate of foreclosures later this year.

Takeaways from State and Metro according to CoreLogic:

  • In May, all states posted annual declines in their overall crime rates. The states with the largest declines were Nevada (down 3.2 percentage points), New York, New Jersey and Hawaii (all down 3.1 percentage points). The other states, including the District of Columbia, had annual delinquency rates that fell between 3 percentage points and 0.9 percentage points.
  • All US metro areas posted at least a slight annual decline in overall crime rates, with Odessa, Texas (down 5.6 percentage points), Kahului-Wailuku-Lahaina, Hawaii (down 5.1 percentage points) and Laredo, Texas (down 4.8 percentage points) posting the largest declines.

Click here to view the full report.

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