Mortgage performance continued to remain strong in November, although early stage delinquencies crept up slightly, according to CoreLogic’s Home Loan Performance Insights Report.
Only 2.9% of all mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure) in November, an increase of 0.1 percentage points from October and unchanged compared with November 2022.
Early-stage delinquencies (30 to 59 days past due) represented 1.5% of all loans, up from 1.4% in November 2022.
Loans 60 to 89 days past due represented 0.4% of all loans, unchanged from November 2022.
Serious delinquencies (90 days or more past due, including loans in foreclosure) represented 0.9% of all loans, down from 1.2% in November 2022 and a high of 4.3% in August 2020.
The U.S. foreclosure rate held at 0.3% for 21st straight month, near its all-time low.
CoreLogic notes that a strong job market is enabling most borrowers with a mortgage to make payments on time, along with forbearance programs that help struggling homeowners temporarily suspend or modify their payment structures.
“U.S. job growth continued at a steady pace in the final quarter of 2023, and the unemployment rate ended the year just slightly higher than its 50-year low,” says Molly Boesel, principal economist for CoreLogic, in the report. “The robust labor market is contributing to small mortgage delinquency numbers, with the overall delinquency rate remaining low and the serious delinquency rate at a record low. Mortgage performance should remain strong in 2024, as the job market is expected to remain healthy.”
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