Loan Performance Insights – March 2024

Introduction

The CoreLogic Loan Performance Insights report features an interactive view of our mortgage performance analysis through January 2024.

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.

Chart 1: Overall U.S. mortgage delinquency rate and year-over-year change, January 2024

"Nationwide, the overall mortgage delinquency rate held steady in January, and the serious delinquency rate fell from a year ago. However, one-third of metros posted an increase in the overall delinquency rate from one year earlier, and a handful reported an increase in serious delinquency rates. While the sizable delinquency rate uptick in the Kahului-Wailuku-Lahaina, Hawaii metro is a result of last year's wildfire, increases in other areas of the country could be a sign that borrowers are experiencing budget strains."

- Molly Boesel

Principal Economist for CoreLogicChart 2: Overall U.S. mortgage delinquency rate by select state and year-over-year change, January 2024

30 Days or More Delinquent - National

In January 2024, 2.8% of mortgages were delinquent by at least 30 days or more including those in foreclosure. This represents a 0.0 percentage point change in the overall delinquency rate compared with January 2023.

Chart 3: U.S. mortgage delinquency rates by time frame and year-over-year change, January 2024

U.S. Job Market Helps Support Mortgage Performance in January

As was the case for most of 2023, U.S. mortgage delinquency and foreclosure rates remained near an all-time low in January. A thriving job market is helping many homeowners pay their mortgages on time, with the U.S. Bureau Of Labor Statistics putting the national unemployment rate at less than 4% for the past two years. Still, a dozen states and a substantial number of metro areas posted year-over-year increases in overall delinquency rates, indicating that the current employment situation does not benefit all Americans equally.

Loan Performance - National

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

The nation's overall delinquency rate for January was 2.8%. The rate for early-stage delinquencies - defined as 30 to 59 days past due - was 1.4% in January 2024, up from January 2023. The share of mortgages 60 to 89 days past due was 0.5%, up from January 2023. The serious delinquency rate - defined as 90 days or more past due, including loans in foreclosure - was 1%, down from 1.2% in January 2023.

As of January 2024, the foreclosure inventory rate was 0.3%, unchanged from January 2023.

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%, unchanged from January 2023.

Chart 4: Share of delinquent mortgages transitioning from one stage to the next and year-over-year change, January 2024

Overall Delinquency - State

In January 2024, 12 states posted year-over-year increases in overall delinquency rates, while 19 states were unchanged. Oklahoma posted the largest annual decline at -0.3%.

[Link]Chart 5: Year-over-year change in overall mortgage delinquency rate by all states and districts, January 2024

Serious Delinquency - Metropolitan Areas

Serious delinquency is defined as 90 days or more past due including loans in foreclosure.

There were four metropolitan areaswhere the Serious Delinquency Rate increased.

There were 32 metropolitan areaswhere the Serious Delinquency Rate stayed the same.

There were 348 metropolitan areas where the Serious Delinquency Rate decreased.

[Link]Chart 6: Year-over-year change in serious mortgage delinquency rate by metro area, January 2024

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.

For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/insights.

Methodology

The data in this report represents foreclosure and delinquency activity reported through January 2024. 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. Approximately one-third of homes nationally are owned outright and do not have a mortgage. CoreLogic has approximately 75% coverage of U.S. foreclosure data.

Source: CoreLogic

The data provided are for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be resold, republished or licensed to any other source, including publications and sources owned by the primary recipient's parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data are illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Robin Wachner at [email protected]. For sales inquiries, please visit https://www.corelogic.com/support/sales-contact/. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. The data are compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.

About CoreLogic

CoreLogic, the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes. For more information, please visit www.corelogic.com.

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