CoreLogic: US Overall Delinquency Rate Continues to Trend Upward in 2024
Industry Update
December 11, 2024
Source: CoreLogic
CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its Loan Performance Insights Report for September 2024. In September, 3% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), up 0.2% year over year from September 2023.
The foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.3% in September, unchanged from the same time last year. The foreclosure inventory rate in September 2024 continues near the lowest rates seen since 1999.
To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquencies. In September 2024, 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): 1.6%, up from 1.5% in September 2023.
Adverse Delinquency (60 to 89 days past due): 0.5%, up from 0.4% in September 2023.
Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, unchanged from the same time last year and continuing its downward trend from 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 September 2023.
Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.8%, unchanged from September 2023.
“Loan performance in the third quarter of 2024 showed a continual upward trend in mortgage delinquencies. Delinquencies remain low, particularly when compared with those during the Great Recession. However, 70% of metropolitan areas showed an increase in the overall delinquency rate from a year earlier, and more concerning, 30% of metropolitan areas showed an increase in the serious delinquency rate. As recently as the second quarter of 2024, only 5% of metros recorded an increase in serious delinquency rates. The increase in the serious delinquency rate shows that borrowers who enter the delinquency pipeline are having difficulty catching up on their late payments,” said Molly Boesel, senior principal economist for CoreLogic.
State and Metro Takeaways:
Thirty-eight states saw overall mortgage delinquency rates increase year over year in September. The two states with the highest delinquency rates were Louisiana (up 0.6 percentage points) and Texas (up 0.4 percentage points). All other states ranged between -0.4 and 0.3 percentage points.
In September, 267 out of 384 U.S. metropolitan areas posted an annual increase in their overall delinquency rate. Top areas include Pine Bluff, Arkansas (up 1.1 percentage points); Houston-The Woodlands-Sugar Land, Texas (up 1.0 percentage points); New Orleans-Metairie, Louisiana (up 0.8 percentage points); Altoona, Pennsylvania (up 0.8 percentage points); Hammond, Louisiana (up 0.8 percentage points); and Houma-Thibodaux, Louisiana (up 0.8 percentage points). All other year-over-year changes ranged between -2.8 and 0.7 percentage points.
In September, 116 metropolitan areas posted an annual increase in their serious delinquency rate. The top areas include Kahului-Wailuku-Lahaina, Hawaii (up 0.8 percentage points); Houston-The Woodlands-Sugar Land, Texas (up 0.6 percentage points); and Beaumont-Port Arthur, Texas (up 0.4 percentage points). All other year-over-year changes ranged between -0.4 and 0.3 percentage points.
The nation’s overall delinquency increased on a year-over-year basis for the fourth consecutive month.
Summary
The share of loans 30 or more days past due in September increased year over year.
The nation’s serious delinquency rate did not change year over year.
The U.S. foreclosure rate stayed roughly the same as last year in September.
For full report, please click the source link above.
