For the month of June, 2.9% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 1.5 percentage point decrease compared to 4.4% in June 2021.
To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In June 2022, 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): 1.2%, up from 1.1% in June 2021.
- Adverse Delinquency (60 to 89 days past due): 0.3%, unchanged from June 2021.
- Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.3%, down from 3% in June 2021 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%, up from 0.2% in from June 2021.
- Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, up from 0.6% in June 2021.
Overall mortgage delinquencies and foreclosure rates remained near two-decade lows in June, with home price growth that remains in double digits and a strong U.S. job market helping to keep mortgage performance healthy. Metro areas that rely on the hospitality industry saw particularly large job losses due to the COVID-19 pandemic in 2020, while hurricanes in that same year impacted employment on the Gulf Coast. This naturally resulted in an increase in mortgage delinquencies, but areas of the country that were most impacted are now recovering.
“While early-stage delinquencies edged up in June, they remained near historic lows through the first half of 2022,” said Molly Boesel, principal economist at CoreLogic. “Later-stage delinquencies fell by 60% from June 2021, with only a small increase in foreclosures, indicating that delinquent borrowers are able to find alternatives to foreclosure.”
State and Metro Takeaways:
- In June, all states posted annual declines in their overall delinquency rates. The states with the largest declines were Hawaii and Nevada (both down 2.6 percentage points), New Jersey (down 2.4 percentage points) and New York (down 2.3 percentage points). The remaining states, including the District of Columbia, registered annual delinquency rate drops between 2.1 percentage points and 0.4 percentage points.
- All U.S. metro areas posted at least a small annual decrease in overall delinquency rates, with Kahului-Wailuku-Lahina, HI (down 4.2 percentage points), Odessa, TX (down 4.1 percentage points) and Atlantic City-Hammonton, NJ (down 3.3 percentage points) posting the largest decreases.
Methodology
The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through June 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. CoreLogic has approximately 75% coverage of U.S. foreclosure data.
