In October 2023, 2.8% of all mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), unchanged from both last month and last year, according to a new report from CoreLogic. Mortgage delinquencies still remain near the historic low of 2.6% seen in March.
According to CoreLogic’s monthly Loan Performance Insights Report, in October 2023, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:
- Early-stage delinquencies (30 to 59 days past due): 1.4%, up from 1.3% in 2022.
- Adverse delinquency (60 to 89 days past due): 0.4%, unchanged from 2022.
- Serious delinquency (90 days or more past due, including loans in foreclosure): 0.9%, down from 1.2% in October 2022 and a high of 4.3% in August 2020.
- Foreclosure inventory rate (the share of mortgages in some stage of the foreclosure process): 0.3%, unchanged from 2022.
- Transition rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, unchanged from 2022.
State and metro takeaways:
- Nine states saw overall mortgage delinquency rates increase YoY. The states with the largest gains were Hawaii (+0.5 percentage points) and Idaho (+0.2 percentage points). Georgia, Louisiana, Mississippi, Oregon, South Dakota, Utah and Washington posted annual delinquency gains of 0.1 percentage points.
- 15 states showed no change in overall delinquency rates YoY. The remaining states’ annual delinquency rates declined between -0.4 percentage points and -0.1 percentage points.
- 97 metro areas posted increases in overall YoY delinquency rates. The metro with the largest increase was Kahului-Wailuku-Lahaina, Hawaii (+3.8 percentage points). Elkhart-Goshen, Indiana; Hammond, Louisiana; Jackson, Michigan; Laredo, Texas and Valdosta, Georgia followed, all with 0.5 percentage point annual increases.
- Three metro areas posted an annual increase in serious delinquency rates, while 28 metros recorded no change. Declines in other metros ranged from -1.2 percentage points to -0.1 percentage points.
- The metros that posted annual serious delinquency increases were Kahului-Wailuku-Lahaina, Hawaii (+0.3 percentage points); Punta, Gorda, Florida (+0.2 percentage points) and Cape Coral-Fort Myers, Florida (+0.1 percentage points).
Major takeaway:
“U.S. mortgage delinquency rates remained healthy in October, with the overall delinquency rate unchanged from a year earlier and the serious delinquency rate remaining at a historic low,” said Molly Boesel, principal economist for CoreLogic. “Most of the decline in the serious delinquency rate stems from a decrease in later-stage delinquencies. Importantly, there was no increase in the foreclosure rate, indicating that borrowers in later stages of delinquencies are finding alternatives to defaulting on their home loans.”
For the full report, click here.
