The U.S. foreclosure rate remains near a historic low despite a small recent uptick
IRVINE, Calif., August 09, 2022--(BUSINESS WIRE)--CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for May 2022.
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Figure 1: National Overview of Loan Performance (Graphic: Business Wire)
For the month of May, 2.7% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), representing a 2 percentage point decrease compared to 4.7% in May 2021.
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.
The U.S. overall mortgage delinquency rate declined for the 14th consecutive month on an annual basis in May to the lowest level recorded since January 1999. While the national foreclosure rate remained flat year over year and month over month, the rate did have a small monthly uptick in March of this year. However, it too remains near a historic low. 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:
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, TX (down 5.6 percentage points), Kahului-Wailuku-Lahaina, HI (down 5.1 percentage points) and Laredo, TX (down 4.8 percentage points) posting the largest decreases.
The next CoreLogic Loan Performance Insights Report will be released on September 13, 2022, featuring data for June 2022. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.
The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through May 2022. The data in this report accounts for only first liens against a property and does not include secondary liens. The delinquency, transition and foreclosure rates are measured only against homes that have an outstanding mortgage. Homes without mortgage liens are not subject to foreclosure and are, therefore, excluded from the analysis. CoreLogic has approximately 75% coverage of U.S. foreclosure data.
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CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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