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Mortgage Delinquency Data Update

foreclosureCoreLogic has released the latest iteration of its monthly Loan Performance Insights Report for May 2022. 

According to CoreLogic, the total delinquency rate fell to 2.7% of all loans, reflecting all loans that were in some stage of delinquency. This represents a 2-percentage point decrease compared to May 2021 when the delinquency rate was 4.7%. 

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In May 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): 1.1%, down from 1.2% in May 2021. 
  • Adverse Delinquency (60 to 89 days past due): 0.3%, unchanged from May 2021. 
  • Serious Delinquency (90 days or more past due, including loans in foreclosure): 1.3%, down from 3.2% in May 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%, unchanged from May 2021. 
  • Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.7% in May 2021. 

This marks the 14th consecutive month on a year-over-year basis the delinquency rate has declined. At it’s current rate, it sits at the lowest recorded level since January 1999. The national foreclosure rate remained flat year-over-year and month-over-month, but it did experience a small uptick in March. As in previous months, home price growth and the resulting equity accumulation helped keep foreclosure rates low in May, with year-over-year appreciation topping 20% this spring. 

“Early-state mortgage delinquencies are at a generational low supported by a strong labor market,” said Molly Boesel, Principal Economist at CoreLogic. “Furthermore, serious delinquencies have declined to where they were in early 2020. While the foreclosure rate remains low, about half of serious delinquencies are from mortgages that are six months or more past due. This suggests that there could be small increases in the foreclosure rate later this year.” 

State and Metro Takeaways according to CoreLogic: 

  • In May, all states posted annual declines in their overall delinquency rates. The states with the largest declines were Nevada (down 3.2 percentage points), New York, New Jersey and Hawaii (all down 3.1 percentage points). The remaining states, including the District of Columbia, registered annual delinquency rate drops between 3 percentage points and 0.9 percentage points. 
  • All U.S. metro areas posted at least a small annual decrease in overall delinquency rates, with Odessa, Texas (down 5.6 percentage points), Kahului-Wailuku-Lahaina, Hawaii (down 5.1 percentage points) and Laredo, Texas (down 4.8 percentage points) posting the largest decreases. 

Click here to view the report in its entirety. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected].

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