July U.S. Mortgage Delinquency Rates Approach Pre-Pandemic Levels, CoreLogic Reports
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Delinquency rates 30 days or more past due decline but approximately one million homeowners remain at least six months behind on payments
IRVINE, Calif.--(BUSINESS WIRE)-- CoreLogic, a leading global property information, analytics and data-enabled solutions provider, today released its monthly Loan Performance Insights Report for July 2021.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211012005033/en/
CoreLogic National Overview of Mortgage Loan Performance, featuring July 2021 Data (Graphic: Business Wire)
For the month of July, 4.2% 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 2.3-percentage point decrease in delinquency compared to July 2020, when it was 6.5%. While overall delinquencies remain above the February 2020, pre-pandemic rate of 3.6%, this is the lowest rate since last March.
To gain an accurate view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In July 2021, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:
- Early-Stage Delinquencies (30 to 59 days past due): 1.1%, down from 1.5% in July 2020.
- Adverse Delinquency (60 to 89 days past due): 0.3%, down from 1% in July 2020.
- Serious Delinquency (90 days or more past due, including loans in foreclosure): 2.8%, down from 4.1% in July 2020. While still high, this is the lowest serious delinquency rate since May 2020.
- Foreclosure Inventory Rate (the share of mortgages in some stage of the foreclosure process): 0.2%, down from 0.3% in July 2020. This is the lowest foreclosure rate recorded since CoreLogic began recording data (1999).
- Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.8% in July 2020.
While we continue to see serious delinquencies improve, approximately one million people nationwide have been unable to make payments for at least half a year. In fact, the share of borrowers six months or more past due made up about one-half of the total delinquencies in July, with many still leaning on options such as forbearance, loan modifications and other government provisions to keep from entering foreclosure.
“Declining delinquency levels are an encouraging sign of economic improvement and the durability of the housing market,” said Frank Martell, president and CEO of CoreLogic. “Looking ahead to the end of many forbearance and other assistance programs, many borrowers receiving support must consider their financial options, including a potential loan modification, to ensure they stay current and keep foreclosures at bay.”
“Even if loan modification or income recovery is unable to help delinquent homeowners become and remain current on their payments, the double-digit rise in home prices may help them avoid a distressed sale,” said Dr. Frank Nothaft, chief economist at CoreLogic. “Homeowners with substantial home equity are far less likely to experience a foreclosure sale, and fortunately, the CoreLogic Home Equity Report found the average owner gained $51,500 in equity in the past year — a five-fold annual increase.”
State and Metro Takeaways:
- In July, all U.S. states logged a decrease in annual overall delinquency rates, with New Jersey (down 3.9 percentage points), Florida (down 3.5 percentage points) and Nevada (down 3.3 percentage points) leading with the largest declines.
- All U.S. metros also posted an annual decrease in overall delinquency rates in July, with Miami (down 5.4 percentage points), Laredo, Texas (down 5.1 percentage points) and Kingston, New York (down 5 percentage points) posting the largest decreases.
- Nevertheless, elevated overall delinquency rates remain in some metros, including Odessa, Texas (11%); Pine Bluff, Arkansas (10.6%) and Laredo, Texas (10.5%).
The next CoreLogic Loan Performance Insights Report will be released on November 9, 2021, featuring data for August 2021. 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 July 2021. 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.
About the CoreLogic Consumer Housing Sentiment Study
3,000+ consumers were surveyed by CoreLogic via Qualtrics. The study is an annual pulse of U.S. housing market dynamics concentrated on consumers looking to purchase a home, consumers not looking to purchase a home, and current mortgage holder. The survey was conducted in April 2021 and hosted on Qualtrics. The survey has a sampling error of ~3% at the total respondent level with a 95% confidence level.
The data provided is for use only by the primary recipient or the primary recipient's publication or broadcast. This data may not be re-sold, republished or licensed to any other source, including publications and sources owned by the primary recipient's parent company without prior written permission from CoreLogic. Any CoreLogic data used for publication or broadcast, in whole or in part, must be sourced as coming from CoreLogic, a data and analytics company. For use with broadcast or web content, the citation must directly accompany first reference of the data. If the data is illustrated with maps, charts, graphs or other visual elements, the CoreLogic logo must be included on screen or website. For questions, analysis or interpretation of the data, contact Amy Brennan at firstname.lastname@example.org. Data provided may not be modified without the prior written permission of CoreLogic. Do not use the data in any unlawful manner. This data is compiled from public records, contributory databases and proprietary analytics, and its accuracy is dependent upon these sources.
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.
CORELOGIC and the CoreLogic logo are trademarks of CoreLogic, Inc. and/or its subsidiaries. All other trademarks are the property of their respective owners.
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