The national mortgage delinquency rate increased to 3.1% in December, an increase of 0.2 percentage points compared with November and an increase of 0.1 percentage points compared with December 2022, according to CoreLogic’s Loan Performance Insights Report.
Seventeen states posted annual overall mortgage delinquency increases, led by Louisiana (up by 0.4 percentage points) and Hawaii (up by 0.3 percentage points).
The U.S. foreclosure rate remained at 0.3% for the 22nd consecutive month.
Early-stage delinquencies (30 to 59 days past due) represented 1.6% of all loans, up from 1.4% in December 2022.
Loans 60 to 89 days past due represented 0.5% of all loans, up from 0.4% in December 2022.
Serious delinquencies (90 days or more past due, including loans in foreclosure) represented 1% of all loans, down from 1.2% in December 2022 and a high of 4.3% in August 2020.
The foreclosure inventory rate – the share of mortgages in some stage of the foreclosure process – was 0.3%, unchanged from December 2022.
Although the overall U.S. mortgage delinquency rate ticked up slightly in December from the previous few months, it remained low by historical standards, CoreLogic says.
Similarly, 17 states posted annual overall delinquency rate increases, but these gains were all less than one-half of a percentage point.
Despite continued healthy mortgage performance, other expenses could squeeze some homeowners’ budgets in the coming months.
“Early-stage mortgage delinquency rates increased in December 2023 from one year earlier but remained near historic lows,” says Molly Boesel, principal economist for CoreLogic, in the report. “There were offsetting declines of home loans that were six months or more past due, which led to a drop in the serious delinquency rate.
“However, other types of consumer credit showed increases in serious delinquency rates at the end of 2023,” Boesel adds. “The Federal Reserve reports that the number of credit-card and automobile-loan transitions moving into serious delinquency were above pre-pandemic levels, which could be a signal of increased financial stress for some Americans.”
Metros with the largest monthly delinquency rate increases included Kahului-Wailuku-Lahainia, Hawaii (up by 2.5 percentage points), followed by New Orleans-Metairie, Louisiana (up by 0.7 percentage points).
Metros that posted an annual increases in serious delinquency rates included Kahului-Wailuku-Lahainia, Hawaii (up by 2.2 percentage points); Carson City, Nevada; and Valdosta, Georgia (both up by 0.1 percentage points).
Photo: Alexander Grey
