Loan Performance Insights

CoreLogic ,  August 10, 2022

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through May 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-state mortgage delinquencies are at a generational low supported by a strong labor market. Furthermore, serious delinquencies have declined to where they were in early 2020. While the foreclosure rate remains low, about half of serious delinquencies are from mortgages that are six months or more past due. This suggests that there could be small increases in the foreclosure rate later this year.”

– Molly Boesel
Principal Economist for CoreLogic

30 Days or More Delinquent – National

In May 2022, 2.7% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 2-percentage point decrease in the overall delinquency rate compared with May 2021.

Mortgage Delinquencies Drop to 23-Year Low

The U.S. overall mortgage delinquency rate declined for the 14th consecutive month on an annual basis in May to the lowest level recorded since January 1999. While the national foreclosure rate remained flat year over year and month over month, the rate did have a small monthly uptick in March of this year. However, it too remains near a historic low. As in previous months, home price growth and the resulting equity accumulation helped keep foreclosure rates low in May, with year-over-year appreciation topping 20% this spring.

Loan Performance – National

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

The nation’s overall delinquency rate for May was 2.7%. The rate for early-stage delinquencies – defined as 30 to 59 days past due – was 1.1% in May 2022, down from May 2021. The share of mortgages 60 to 89 days past due was 0.3%, unchanged from May 2021. The serious delinquency rate – defined as 90 days or more past due, including loans in foreclosure – was 1.3%, down from 3.2% in May 2021.

As of May 2022, the foreclosure inventory rate was 0.3%, unchanged from May 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 0.6%, down from May 2021.

Overall Delinquency – State

Overall delinquency is defined as 30-days or more past due, including those in foreclosure.

In May 2022, all states logged year-over-year declines in their overall delinquency 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).

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.

To learn more about the data behind this article and what CoreLogic has to offer, visit https://www.corelogic.com/.