For the month of April, 2.9% of all mortgages in the United States were at some stage of delinquency (30 days or more past due, including those in foreclosure), representing a decrease of 1.8 percentage points from 4.7% in April 2021, according to CoreLogic’s latest Loan Performance Report for April 2022, released last week.
Key additional findings from the report:
- Early delinquencies (30 to 59 days overdue): 1.2%, compared to 1% in April 2021.
- Adverse delinquency (60 to 89 days past due): 0.3%, unchanged from April 2021.
- Serious delinquency (90 days or more past due, including loans in foreclosure): 1.4%, down from 3.3% in April 2021 and a high of 4.3% in August 2020.
- Foreclosure inventory rate (the share of mortgages at one stage of the foreclosure process): 0.3%, unchanged from April 2021.
- Transition rate (the share of mortgages that moved from current to 30 days past due): 0.7%, down from 0.6% in April 2021.
State and Metro Discoveries
- In April, all states posted year-over-year declines in their overall crime rate.
- The states with the largest declines were Nevada (down 3.2 percentage points), Hawaii (down 3 percentage points) and New Jersey (down 2.7 percentage points).
- The other states, including the District of Columbia, had annual delinquency rates between 2.6 percentage points and 0.7 percentage points.
- All US metro areas posted at least a slight annual decline in overall crime rates, with Odessa, Texas (down 5 percentage points), Kahului-Wailuku-Lahaina, Hawaii (down 4.9 percentage points). percent) and Midland, Texas (down 4.3 percentage points) posting the largest declines.
Double-digit annual gains in home prices for more than last year led to a continued rise in capital gains in the first quarter, helping to keep overall U.S. mortgage default and foreclosure rates near one all-time low in April, CoreLogic said. Although both delinquency and foreclosures figures were unchanged from March 2022 and last April, both were up slightly from the end of 2021. This small change in foreclosures figures partly reflects lenders ending to their forbearance periods for extremely delinquent borrowers rather than the overall health of what remains relatively solid housing. market, according to the report.
“The U.S. foreclosure rate increased slightly in the spring of 2022 after hitting an all-time low in late 2021,” said Molly Boesel, senior economist at CoreLogic. “The moratorium and forbearance that saved homeowners from foreclosure is coming to an end for many borrowers, but high employment numbers and deep equity should keep foreclosure rates low at the future.”