CoreLogic: Mortgage delinquencies continued to rise in September
It indicated a continuous decline in performance from the end of the third quarter of September 2023. According to a report released this week, nearly 3% of all mortgages are in some form of delinquency in September 2024. This is an increase of 20 basis points year-on-year.
According to CoreLogic's September 2024 report, this is the fourth consecutive month of year-over-year increases in national delinquencies. The report showed an increase in all categories, including early stage, negative and serious violations.
The report does not include information on secondary collateral. All rates are measured by homes with outstanding mortgage balances. CoreLogic said it covers 75% of U.S. foreclosure data.
Early delinquencies (30 to 59 past due) rose 10 bps over the past year and accounted for 1.6% of all loans in September. Negative delinquencies (60-89 days past due) also increased by 10 bps for a 0.5% share. CoreLogic noted that serious delinquencies (at least 90 days past due) remained unchanged at 0.9% — although that rate is well below the peak of 4.3% in August 2020.
Despite rising delinquency rates, the number of mortgage loans did not fall below 0.3% in September 2023. The transition rate for mortgage loans from current payments to early stages was 0.8% – unchanged from September 2023.
CoreLogic estimates that the US delinquency rate in September was quite low compared to previous years. But violations in some metro areas may be a cause for concern.
“Virgin remains low, especially compared to what it was during the Great Recession. However, 70% of major cities showed an increase in general crime compared to a year ago, and 30% of more metropolitan areas showed an increase in serious crime,” said CoreLogic's chief economist. .
Boesel's first concern is with 267 of the 384 metro areas that saw a year-over-year increase in their overall delinquency.
Pine Bluff had the largest increase at 1.1% year-over-year. After that (+1%); (+0.8%); Altoona, PA (+0.8%); Hammond, (+0.8%); and Houma-Thibodaux, Louisiana (+0.8%).
Over the past year, 116 metros have recorded a significant increase in law violations. These areas were led by Kahului-Wailuku-Lahaina, (+0.8%); Houston (+0.6%); and Beaumont-Port Arthur, (+0.4%).
CoreLogic also noted that 38 states saw an overall increase in delinquencies since September 2023, led by Louisiana (+0.6%) and Texas (+0.4%).
The theme of this report follows similar narratives across the industry.
The national delinquency rate was 3.48% in September, up 14 basis points from a year ago. The (MBA) reported an annual increase of 3.92% for one to four unit properties.
