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Mortgage Delinquency Rates Hit Historic Lows in June 2023, CoreLogic Report Finds

Aug 31, 2023
Delinquencies in closed-end loans increased in last year’s third quarter, according to results from the American Bankers Association’s (ABA) Consumer Credit Delinquency Bulletin
News Director

June data reveals exceptional mortgage performance despite lingering effects of natural disasters on local markets.

A new CoreLogic report on June mortgage delinquencies found performance has remained exceptionally robust.

According to the report, only 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. This represents a 0.3% decrease from June 2022 and remains unchanged from May 2023.

Delinquency Breakdown

  • Early-Stage Delinquencies (30 to 59 days past due) were at 1.3%, a slight uptick from 1.2% in June 2022.
  • Adverse Delinquency (60 to 89 days past due) stood at 0.4%, also a minor increase from 0.3% in June 2022.
  • Serious Delinquency (90 days or more past due, including loans in foreclosure) decreased to 1% from 1.3% in June 2022, and from a high of 4.3% in August 2020.
  • Foreclosure Inventory Rate remained unchanged, at 0.3% compared to June 2022.
  • Transition Rate (mortgages that transitioned from current to 30 days past due) was 0.6%, down from 0.7% last year.

"The national mortgage delinquency rate remained at a historic low in June," said Molly Boesel, principal economist for CoreLogic. She noted that fewer states and metro areas experienced year-over-year delinquency increases compared to earlier this spring. These positive signs suggest both the employment situation and mortgage performance in the U.S. are on a solid track.

However, Boesel cautioned that recent natural disasters could impact future numbers, as delinquencies often rise in the wake of such events. For instance, two Florida Gulf Coast communities saw an annual increase in serious delinquency rates nine months after Hurricane Ian in Sept. 2022.

No states reported year-over-year increases in overall mortgage delinquency rates for June. However, 31 metro areas did experience an increase, led by Cape Coral-Fort Myers and Punta Gorda in Florida, along with Yakima, Washington, and Elkhart-Goshen, Indiana.

Three U.S. metro areas reported an increase in serious delinquency rates, with Florida communities leading the charge once again, followed by Cheyenne, Wyoming.

About the author
Christine Stuart is the news director at NMP.
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