Overall US Mortgage Delinquency Rate Drops to All-Time Low in March, CoreLogic Reports
CoreLogic®, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for March 2023.
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Figure 1: National Overview of Loan Performance (Graphic: Business Wire)
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.
To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In March 2023, the U.S. delinquency and transition rates and their year-over-year changes were as follows:
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.
"The U.S. mortgage delinquency rate fell to a historic low in March, reflecting the lowest U.S. unemployment rate in more than 50 years," said Molly Boesel, principal economist for CoreLogic. "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."
"This equity should protect many homeowners from foreclosures," Boesel continued. "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."
State and Metro Takeaways:
The next CoreLogic Loan Performance Insights Report will be released on June 29, 2023, featuring data for April 2023. For ongoing housing trends and data, visit the CoreLogic Intelligence Blog: www.corelogic.com/intelligence.
The data in The CoreLogic LPI report represents foreclosure and delinquency activity reported through March 2023. 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.
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CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company's combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.com.
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