Mortgage Performance Remained Exceptionally Healthy in November

For the month of November, 2.9% of all mortgages in the U.S. were in some stage of delinquency, representing a 0.7 percentage point decrease compared to 3.6% last year, according to a new report from CoreLogic.

According to CoreLogic’s monthly Loan Performance Insights Report, in November 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): 1.4%, up from 1.2% in November 2021.
  • Adverse Delinquency (60 to 89 days past due): 0.4%, up from 0.3% in November 2021.
  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.2%, down from 2% in November 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 November 2021.
  • Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, up from November 2021.

State and metro findings:

  • All states posted annual declines in overall delinquency rates. The states and districts with the largest declines were Louisiana (-1.9 percentage points), Alaska (-1.6 percentage points) and the District of Columbia and Hawaii (-1.3 percentage points). The remaining states’ annual delinquency rates dropped between 0.1 percentage points and 1.2 percentage points.
  • 18 metro areas posted an increase in overall delinquency rates. The top three areas for mortgage delinquency gains year over year were Cape Coral-Fort Myers, Florida (+3.1 percentage points), Punta Gorda, Florida (+2.9 percentage points) and Bloomsburg-Berwick, Pennsylvania (+0.6 percentage points).
  • All but one metro area posted at least a small annual decrease in serious delinquency rates, with Houma-Thibodeaux, Louisiana (-4.2 percentage points), Odessa, Texas (-3 percentage points) and New Orleans and Hammond, Louisiana (-2.9 percentage points) posting the largest declines. The only metro to see an increase in serious delinquencies was Bloomsburg-Berwick, Pennsylvania.

Major takeaway:

CoreLogic stated that overall mortgage delinquency and foreclosure rates remained near record lows in November, at 2.9% and 0.3%, respectively. While national mortgage delinquencies declined for the 20th straight month on an annual basis, 18 metro areas saw at least slight increases in late borrower payments, up from six in October and one in September. Despite that uptick and slowing home price growth in recent months, most owners are in good shape due to healthy amounts of equity. 

“Most homeowners are well positioned to weather a shallow recession,” said Molly Boesel, principal economist at CoreLogic. “More than a decade of home price increases has given homeowners record amounts of equity, which protects them from foreclosure should they fall behind on their mortgage payments.”

For the full report, click here.

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