Based on CoreLogic's latest monthly Loan Performance Insights Report for August, 2.6% 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 0.2 percentage point decrease compared with 2.8% in August 2022 and a 0.1 percentage point decrease from July 2023.
To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In August 2023, the U.S. delinquency and transition rates and their year over-year changes, were as follows:
The share of U.S. mortgages that fell into serious delinquency -- representing borrowers who are three months late on payments -- dropped to the lowest level in nearly 25 years in August, at 0.9%. Nationwide, overall mortgage delinquencies (2.6%) and foreclosures (0.3%) also remained near historic lows, a clear sign that most U.S. homeowners can currently cover their monthly payments. But as interest rates have approached 8% in October, more prospective buyers could be sidelined, a factor that makes timing the housing market crucial to building long-term wealth.
"U.S. mortgage performance remained strong in August, supported by a robust job market and a healthy economy," said Molly Boesel, principal economist at CoreLogic. "However, this thriving job market comes at a time when interest rates are quickly rising, which is keeping many potential homebuyers from being able to secure a mortgage."
State and Metro Takeaways: