Mortgage Delinquencies Decrease Both Monthly and AnnuallyBy RISMedia Staff
For the month of January, 2.8% of all mortgages in the U.S. were in some stage of delinquency, a 0.5 percentage point decrease compared with 3.3% last year and a 0.2 percentage point decrease compared with last month, according to a new report from CoreLogic.
According to CoreLogic’s monthly Loan Performance Insights Report, in January 2023, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:
“U.S. mortgage performance barely moved in January, with overall delinquency and foreclosure numbers hovering near historic lows. Although annual home equity gains slowed significantly in the fourth quarter of 2022, the average borrower still has about $270,000 in equity, which can safeguard against foreclosure,” said the author of the report. “Additionally, although layoffs at some-high profile technology companies have recently made headlines, U.S. unemployment remained at less than 4% in the first two months of 2023.” “The share of home loans in all stages of delinquency continues to decline, down from a high of 7.3% in the spring of 2020 and down by 0.5 percentage points from January 2022,” added Molly Boesel, principal economist at CoreLogic. “The annual decrease in overall delinquencies was primarily driven by a large decline in the share of mortgages six months or more past due. Despite the drop in overall delinquencies, the foreclosure rate has slowly crept up. Although it remains near an all-time low, about 30,000 more U.S. homeowners are now involved in the foreclosure process.” For the full report, click here. |
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