U.S. mortgage delinquencies remained almost unchanged in July, nudging up 0.1 percentage point to 2.7% from 2.6% in June, according to CoreLogic’s Loan Performance Insights.
In fact, both delinquency and foreclosure rates hovered near all-time lows in July.
“Overall U.S. mortgage delinquencies remained near a record low in July, with the share of homes entering that status or progressing to later stages either unchanged or lower,” said Molly Boesel, principal economist for CoreLogic, in a news release.
She added: “Since most borrowers have substantial amounts of home equity, those who have locked in low mortgage rates that do enter later stages of delinquency will most likely not experience foreclosures.”
On home equity, Boesel noted that home-price growth should pick up over the next year.
A deeper dive into mortgage delinquencies
To provide a more granular understanding of mortgage performance, CoreLogic breaks down all stages of delinquency into five categories: early-stage delinquencies (30 to 59 days past due); adverse delinquency (60 to 89 days past due); serious delinquency (90 days or more past due, including loans in foreclosure); foreclosure inventory rate (share of mortgages in the foreclosure process); and transition rate (share of mortgages that transitioned from current to 30 days past due).
The rate for early-stage delinquencies was 1.3% in July. For adverse delinquency, the rate was 0.4%. The serious delinquency rate was 1%, a 23-year low. All three rates were either unchanged from July 2022 or down slightly.
Meanwhile, the foreclosure inventory rate remained unchanged for the 17th consecutive month at 0.3%. The transition rate was 0.7%, unchanged from July 2022.
However, those rates might pick up later this year as hurricane season is in full swing until Nov. 30, the report highlighted.
Out of all 50 U.S. states, only Idaho had more delinquencies in July 2023 than the year prior.
Overall, delinquency rates either remained unchanged year over year (Arizona and Utah) or declined slightly. Alaska, New York, Oklahoma and West Virginia posted the biggest improvements on mortgage delinquencies.