Mortgage delinquencies and foreclosures inched up slightly in June compared with May but continued to remain at two-decade lows, according to CoreLogic’s monthly Loan Performance Insights Report.
For June, 2.9% 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 1.5 percentage point decrease compared to 4.4% in June 2021.
Early-stage delinquencies (30 to 59 days past due) represented 1.2% of all loans, up 1.1% compared with June 2021.
Loans 60 to 89 days past due represented 0.3% of all loans, unchanged from June 2021.
Serious delinquencies (90 days or more past due, including loans in foreclosure) represented 1.3%, down from 3% in June 2021 and a high of 4.3% in August 2020.
The foreclosure inventory rate (the share of mortgages in some stage of the foreclosure process) stood at 0.3%, up slightly from 0.2% in June 2021.
Rising home prices and a strong U.S. job market helped to keep mortgage performance healthy in June, CoreLogic says.
“While early-stage delinquencies edged up in June, they remained near historic lows through the first half of 2022,” says Molly Boesel, principal economist at CoreLogic, in the report. “Later-stage delinquencies fell by 60 percent from June 2021, with only a small increase in foreclosures, indicating that delinquent borrowers are able to find alternatives to foreclosure.”
States that posted the largest annual declines in their overall delinquency rates included Hawaii and Nevada (both down 2.6 percentage points), New Jersey (down 2.4 percentage points) and New York (down 2.3 percentage points).
