Serious Delinquency Rates for All Mortgage Loan Types Continue to Fall
January 18, 2023
Source: Core Logic
The nation’s overall mortgage delinquency rates have improved significantly over the last year, according to the latest CoreLogic Loan Performance Insights Report. Data shows the serious delinquency rate for October 2022 declined one percentage point from 12 months prior to 1.2%. Compared to the peak serious delinquency rate for mortgages in August 2020, the rate in October was down three percentage points, which was mostly driven by strong labor market conditions since the U.S. economy reopened. While serious delinquencies for all types of mortgages have declined over the past two years, it is important to look at the trends by loan type as some loans are more sensitive to changes in a macroeconomic environment.
As of October 2022, the serious delinquency rates for Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) and conventional loans were 4.6%, 2.5% and 0.8%, respectively (Figure 1). The serious delinquency rate decreased for all loan types in October 2022 compared with a year prior when COVID-related delinquencies spiked.
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