The nation's overall delinquency rate for May reached its highest level since February 2014, according to the latest Loan Performance Insights report published by CoreLogic.
During May, 7.3% of mortgages were delinquent by at least 30 days or more. The number includes those in foreclosure. This represents a 3.7% increase from the May 2019 overall delinquency rate.
The rate for early-stage delinquencies–defined as between 30 to 59 days past due–was 3% in May, up from 1.7% on a year-over-year measurement. The share of mortgages that were 60 to 89 days past was 2.8%, a 0.6% uptick from the previous year. The serious delinquency rate–defined as 90 days or more past due, including loans in foreclosure–was 1.5%, a slight increase from 1.3% in May 2019 and the first annual increase in serious delinquencies since November 2010.
Downward motion was recorded in the foreclosure inventory rate, which hit 0.3% in May, down from 0.4% one year earlier. This is the lowest foreclosure rate for any month since at least January 1999. The share of mortgages that transitioned from current to 30-days past due was 2.2%, compared to 0.8% one year earlier.
Among the states, New York led the nation with an overall delinquency rate of 11.4%, followed by neighboring New Jersey at 11% and Louisiana at 10.6%. CoreLogic noted that nearly every metro area posted an annual increase in their overall delinquency rate, most notably Miami with an increase of 9.2 percentage points and Odessa, Texas, up 9 percentage points.
CoreLogic added that there were 296 metropolitan areas where the serious delinquency rate increased and 52 where the rate remained the same.
“Government and industry relief programs have helped to cushion the initial financial blow of the pandemic for millions of U.S. homeowners,” said Frank Martell, President and CEO of CoreLogic. “COVID-19 and the resulting pressures continue to influence the economic activity of many households. Barring additional intervention from the federal and state governments, we are likely to see meaningful spikes in delinquencies over the short to medium term.”