Mortgage Performance Ends 2022 on Strong NoteBy RISMedia Staff
For the month of December, 3% of all mortgages in the U.S. were in some stage of delinquency, a 0.4 percentage point decrease compared to 3.4% last year and less than a 0.1 percentage point increase from last month, according to a new report from CoreLogic.
According to CoreLogic’s monthly Loan Performance Insights Report, in December 2022, the U.S. delinquency and transition rates, and their year-over-year changes, were as follows:
CoreLogic stated that mortgage delinquency and foreclosure rates remained consistently low throughout 2022 and closed the year in the same way. December’s 3% overall delinquency rate and the 0.3% foreclosure rate were only slightly higher than numbers recorded over the previous six months. Both types of delinquencies bottomed out in early 2022 and are now showing signs of minor upticks. Additionally, CoreLogic stated that most of that small increase comes from a change in early-stage delinquencies, which began inching up in mid-2022 after hovering near historic lows in the spring of 2021. Still, even with that slight market adjustment, delinquencies remain at the lowest level since the data series began in 1999. On the other hand, December’s 1.2% serious delinquency rate has barely moved since last spring, which suggests that while some borrowers may have missed several mortgage payments, most are likely to recover relatively quickly. “Mortgage delinquency rates continued to post some of the strongest performance in three years in December, as a healthy job market helped borrowers remain current on their payments,” said Molly Boesel, principal economist at CoreLogic. “High amounts of home equity cushioned those borrowers who were far behind, keeping them from moving into foreclosure. While there was a small uptick in early-stage delinquencies and foreclosure inventory over 2022, other delinquency measures fell to new lows throughout the year.” For the full report, click here. |
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