September signified a steady decline in mortgage performance since the end of third-quarter 2023. About 3% of all mortgages were in some form of delinquency in September 2024 — up 20 basis points year over year, according to a CoreLogic report released this week.
This is the fourth consecutive month that the national delinquency increased year over year, according to CoreLogic’s September 2024 Loan Performance Insights Report. The report showed upward growth across all categories of delinquencies — including early-stage, adverse and serious delinquencies.
The report does not include data on secondary liens. All rates are measured against homes with outstanding mortgage balances. CoreLogic said it covers 75% of U.S. foreclosure data.
Early-stage delinquencies (30 to 59 says past due) grew by 10 bps over the past year and accounted for 1.6% of all loans in September. Adverse delinquencies (60 to 89 days past due) were also up 10 bps for a share of 0.5%. Serious delinquencies (at least 90 days overdue) remained unchanged at 0.9% — although that rate is well below the peak of 4.3% in August 2020, CoreLogic noted.
Despite rising delinquency rates, the number of mortgages in foreclosure has not budged from the 0.3% rate in September 2023. The transition rate for mortgages moving from current to early-stage delinquencies was 0.8% — also unchanged from September 2023.
CoreLogic believes September’s U.S. delinquency rate was fairly low compared to previous years. But delinquencies in some metro areas may be of concern.
“Delinquencies remain low, particularly when compared with those during the Great Recession. However, 70% of metropolitan areas showed an increase in the overall delinquency rate from a year earlier, and more concerning, 30% of metropolitan areas showed an increase in the serious delinquency rate,” Molly Boesel, senior principal economist at CoreLogic, said in a statement.
Boesel’s first concern refers to the 267 of 384 metro areas that had annualized increases in their overall delinquency rates.
Pine Bluff, Arkansas, had the largest increase, up 1.1% year over year. It’s followed by Houston (+1%); New Orleans (+0.8%); Altoona, Pennsylvania (+0.8%); Hammond, Louisiana (+0.8%); and Houma-Thibodaux, Louisiana (+0.8%).
Serious delinquency rate increases impacted 116 metros over the past year. These areas were led by Kahului-Wailuku-Lahaina, Hawaii (+0.8%); Houston (+0.6%); and Beaumont-Port Arthur, Texas (+0.4%).
CoreLogic also noted that 38 states saw overall increases in delinquencies since September 2023, with Louisiana (+0.6%) and Texas (+0.4%) leading the way.
The theme of this report is consistent with similar narratives across the industry.
ICE Mortgage Technology reported a national delinquency rate of 3.48% in September, up 14 basis points from a year earlier. The Mortgage Bankers Association (MBA) reported a yearly increase in the third-quarter delinquency rate, which stood at 3.92% for one- to four-unit properties.
