U.S. Mortgage Delinquencies Remain Near Historic Low in SeptemberBy RISMedia Staff
For the month of September, 2.8% of all mortgages in the U.S. (approximately 1.4 million loans) were in some stage of delinquency, representing a 1.1 percentage point decrease compared to 3.9% last year, according to a new report from CoreLogic.
According to CoreLogic’s monthly Loan Performance Insights Report, in September 2022, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:
CoreLogic stated that overall U.S. mortgage delinquencies again hovered near record lows in September, with every state and all but one metro in Illinois posting at least slight annual declines. However, the report also found that with a potential recession and projected increase in the national unemployment rate looming, some uptick in delinquency rates could be expected in 2023. That said, 99% of homeowners with a mortgage have locked in rates below 6%. As a result, even if delinquency activity posts a minor increase, it is unlikely to cause the type of housing downturn seen during the Great Recession, when questionable underwriting practices allowed buyers to take out mortgages that exceeded their budgets. “All stages of delinquency remained low in September,” said Molly Boesel, principal economist at CoreLogic. “Early-stage, overall and serious delinquencies were either at or below their pre-pandemic rates. Low unemployment, which has also returned to the level seen before the COVID-19 outbreak, is contributing to strong mortgage performance. However, if the U.S. enters a recession, increases in delinquency rates can be expected.” For the full report, click here. |
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