CoreLogic: Most US States, Metros, Post Annual Overall Mortgage Delinquency Increases in March

The U.S. overall mortgage delinquency rate remained near a historically low 2.8% in March, up slightly from one year earlier

Forty-eight states posted annual overall mortgage delinquency increases, three remained unchanged and none recorded year-over-year declines

More than 80% of tracked U.S. metro areas saw serious delinquency rates rise on an annual basis in March, ranging from 1.6% to 0.1%

CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, released its monthly Loan Performance Insights Report for March 2024.

In March 2024, 2.8% of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in foreclosure), up year-over-year from March 2023 and unchanged from February 2024.

To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquencies. In March 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): 1.5%, up from 1.1% in March 2023.
• Adverse Delinquency (60 to 89 days past due): 0.4%, up from 0.3% in March 2023.
• Serious Delinquency (90 days or more past due, including loans in foreclosure): 0.9%, down from 1.1% in March 2023 and 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 March 2023.
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.7%, up from 0.5% in March 2023.

The nation’s overall mortgage delinquency rate held at 2.8% in March for the third straight month but moved up slightly from the same time last year. Almost all states followed suit, posting annual gains between 0.7 percentage points and 0.1 percentage points. The national foreclosure rate stayed at 0.3% for the 25th straight month, a sign that mortgage performance remains strong despite the small annual delinquency gains. Also, a U.S. unemployment rate that remained below 4% in April should help most borrowers pay their bills on time in the coming months.

“The U.S. delinquency rate increased from a year earlier in March, driven by an uptick in early-stage delinquencies,” said Molly Boesel, principal economist for CoreLogic. “Further, the early-stage delinquency rate remained flat from February to March this year, while it typically falls between those months, as many borrowers receive income tax refunds in March. While monthly changes in the early-stage delinquency rate can be volatile, this break from the seasonal trend comes at a time when household budgets are strained by still-high inflation.”

State and Metro Takeaways

• Forty-eight states saw overall mortgage delinquency rates increase year over year in March. The state with the largest gain was Louisiana (up by 0.7 percentage points). Three states showed no change in overall delinquency rates year over year.
• In March, 313 U.S. metro areas posted increases in overall year-over-year delinquency rates. The metro with the largest delinquency rate increase is Kahului-Wailuku-Lahaina, Hawaii (up by 1.6 percentage points), followed by Danville, Illinois; Laredo, Texas and New Orleans-Metairie, Louisiana (all up by 0.9 percentage points). Those four metros were all affected by natural disasters over the past year, which likely contributed to the uptick in serious delinquencies.
• In March, six U.S. metro areas posted an annual increase in serious delinquency rates (defined as 90 days or more late on a mortgage payment), while 39 metros recorded no change. Declines in other metros ranged from -1.5 percentage points to -0.1 percentage points. The metro that posted the largest annual serious delinquency increases was Kahului-Wailuku-Lahaina, Hawaii (up by 1.5 percentage points).

The next CoreLogic Loan Performance Insights Report will be released on June 27, 2024, featuring data for April 2024. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.

Methodology

The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through March 2024. 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.

About CoreLogic

CoreLogic is a leading provider of property insights and innovative solutions, working to transform the property industry by putting people first. Using its network, scale, connectivity and technology, CoreLogic delivers faster, smarter, more human-centered experiences that build better relationships, strengthen businesses and ultimately create a more resilient society. For more information, please visit www.corelogic.com.

CORELOGIC, the CoreLogic logo, CoreLogic HPI and CoreLogic HPI Forecast are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.

Contact:

Robin Wachner – Media Contact – newsmedia@corelogic.com

Source: CoreLogic, Inc.