CoreLogic’s monthly Loan Performance Insights Report for March 2023 reveals the rate of mortgage delinquency in the United States fell to a historic low in March, reflecting the lowest U.S. unemployment rate in more than 50 years.
For the month of March, 2.6% 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 0.3 percentage point decrease compared with 2.9% in March 2022 and a 0.4 percentage point decrease compared with 3% in February 2023.
The overall U.S. mortgage delinquency rate declined to a new low in March, buoyed by an exceptionally strong job market. Despite regular news of major layoffs – particularly in the tech sector – April’s 3.4% unemployment rate remains near an all-time low, indicating that many workers who recently lost jobs were able to quickly find new positions, enabling them to stay current on their mortgage payments.
Nationwide, serious delinquencies also dropped to the lowest level in more than two decades in March, while foreclosures also remained near a historic low. As in previous months, several metro areas on Florida’s Gulf Coast continue to see elevated serious delinquency rates as a result of the lingering effects of last fall’s Hurricane Ian.
“While a slowing economy could cause increases in job losses and mortgage delinquencies, years of home-equity gains will provide borrowers who fall behind on their payments with a cushion,” says Molly Boesel, principal economist for CoreLogic.
“This equity should protect many homeowners from foreclosures,” she adds. “There is no current projection that the U.S. foreclosure rate will reach the same level as it did during the housing crisis more than a decade ago.”
