More Than 30 U.S. Metros Post Increase in YoY Delinquency Rates

CoreLogic has released its monthly Loan Performance Insights Report for June 2023  showing that an estimated 2.6% of all mortgages in the U.S. were in some stage of delinquency—defined as 30 days or more past due, including those in foreclosure—representing a 0.3 percentage point decrease compared with 2.9% in June 2022 and unchanged from May 2023.

CoreLogic examined all stages of delinquency and found that in June 2023, 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): 1.3%, up from 1.2% in June 2022
• Adverse Delinquency (60 to 89 days past due): 0.4%, up from 0.3% in June 2022.
• Serious Delinquency (90 days or more past due, including loans in foreclosure): 1%, down from 1.3% in June 2022 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 June 2022.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.7% in June 2022.

U.S. mortgage performance remained exceptionally strong in June, with both overall delinquency and foreclosure rates at or near historic lows. Far fewer states and metro areas posted year-over-year delinquency increases than recorded earlier in the spring, indicating that both the employment situation and mortgage performance are on a solid track for the rest of 2023.

“The national mortgage delinquency rate remained at a historic low in June,” said Molly Boesel, Principal Economist for CoreLogic. “In addition, fewer states and metro areas posted annual increases in overall delinquency rates compared with May.”

State and Metro Takeaways:

• No U.S. states posted year-over-year increases in overall mortgage delinquency rates in June. Annual delinquency rate decreases ranged from -0.9 to 0.0 percentage points in June 2022.
• In June, 31 U.S. metro areas posted an increase in overall year-over-year delinquency rates. The metros with the largest increases were Cape Coral-Fort Myers, FL (up by 0.6 percentage points); Punta Gorda, FL (up by 0.5 percentage points); and Yakima, WA, and Elkhart-Goshen, IN (both up by 0.3 percentage points).
• Three U.S. metro areas posted an increase in serious delinquency rates (defined as 90 days or more late on a mortgage payment) in June, while changes in other metro areas ranged from -1.6 percentage points to 0.0 percentage points. The metros that posted annual serious delinquency increases were Cape Coral-Fort Myers, FL, and Punta Gorda, FL (both up by 0.5 percentage points) and Cheyenne, WY (up by 0.1 percentage points).

“While June’s data does not reflect the most recent U.S. natural catastrophes, it is typical to see mortgage delinquencies increase about one month following disasters," said Boesel. "Delinquency rates in these areas often remain elevated for months, progressing from early stage to serious. For example, two Florida Gulf Coast communities continued to post annual increases in serious delinquency rates in June, nine months after the property damage from Hurricane Ian in September 2022.”

The next CoreLogic Loan Performance Insights Report will be released on September 28, 2023, featuring data for July 2023.

To read the full report, including more data, charts, and methodology, click here.