Based on CoreLogic's latest monthly Loan Performance Insights Report for May 2023, 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 0.1 percentage point decrease compared with 2.7% in May 2022 and a 0.2 percentage point decrease compared with 2.8% in April 2023.
To gain a complete view of the mortgage market and loan performance health, CoreLogic examines all stages of delinquency. In May 2023, the U.S. delinquency and transition rates and their year-over-year changes, were as follows:
The U.S. overall mortgage delinquency rate again fell to a historic low in May, returning to the level seen in March of this year, while the near-all-time low foreclosure rate has not changed since spring 2022. However, 14 states and nearly 170 metropolitan areas saw overall delinquencies increase year over year in May, similar to April data. Still, despite this pattern and gradually declining U.S. home price gains over the past year, overall mortgage performance remains quite healthy, boosted by steady employment numbers.
"May's overall mortgage delinquency rate matched the all-time low, and serious delinquencies followed suit," said Molly Boesel, principal economist at CoreLogic. "Furthermore, the rate of mortgages that were six months or more past due, a measure that ballooned in 2021, has receded to a level last observed in March 2020."
"A very strong job market continues to help borrowers pay their mortgages on time," Boesel continued. "The U.S. economy has added nearly 25 million jobs since April 2020 and about 4 million in the last year. As a result, the unemployment rate has ranged from 3.4% to 3.7% for the past 16 months. While the job market may slightly weaken over the next year, we project that mortgage performance will remain healthy."
State and Metro Takeaways