Decline in mortgage delinquencies signals strong housing market, says CoreLogic
CoreLogic has published its mortgage delinquency report for August, revealing a 0.2% year-over-year drop in overall delinquencies.
The report showed that 2.6% of all mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure), marking a 0.2 percentage point decrease from August 2022 and a 0.1 percentage point drop from July 2023.
Breaking down the figures, early-stage delinquencies (30 to 59 days past due) rose slightly to 1.3%, up from 1.2% in August 2022. Adverse delinquencies (60 to 89 days past due) also increased to 0.4% from 0.3% in the previous year.
However, serious delinquencies (90 days or more past due, including loans in foreclosure) decreased to 0.9%, down from 1.2% in August 2022 and significantly lower than the 4.3% high in August 2020. The foreclosure inventory rate remained stable at 0.3%, unchanged from August 2022.
The report highlights a significant milestone, with the share of mortgages falling into serious delinquency reaching the lowest level in nearly 25 years at 0.9%. This decline indicates that most homeowners are currently able to meet their monthly mortgage payments. Despite this positive trend, the rising interest rates, which approached 8% in October, could potentially sideline more prospective buyers.
“US mortgage performance remained strong in August, supported by a robust job market and a healthy economy,” said CoreLogic principal economist Molly Boesel. “However, this thriving job market comes at a time when interest rates are quickly rising, which is keeping many potential homebuyers from being able to secure a mortgage.”
Idaho and Utah both saw small annual increases in overall mortgage delinquency rates, each up by 0.1%. In contrast, Arizona, Florida, Indiana, and Oregon experienced no year-over-year change in overall delinquency rates. The remaining states reported declines in annual delinquency rates ranging from 0.1% to 0.8%.
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