New report shows mortgage delinquencies continue to decline

Three percent of all U.S. mortgages were in some stage of delinquency in July, a 1.2 percent decrease from exactly one year earlier, according to data released last week.

Mortgage delinquencies have now dropped for 16 consecutive months year-over-year and remain near historic lows, Irvine-based CoreLogic reported in its monthly assessment of the U.S. mortgage market.

Early-stage delinquencies – 30 to 59 days past due – were at 1.3 percent, up slightly from July 2021. Adverse delinquencies – 60 to 89 days overdue – accounted for 0.4 percent of the nation’s mortgage delinquencies, essentially unchanged from the previous year.

Serious delinquencies – 90 days or more past due, including foreclosures – stood at 1.3 percent, down from 2.8 percent in July 2021 and a high of 4.3 for 4.3 percent in August 2020.

Zero point three percent of the nation’s mortgages were in some stage of foreclosure in July, essentially unchanged year-over-year.

“Early-stage delinquencies are showing a small but clear increasing trend on a month-over-month and year-over-year basis,” said Molly Boesel, CoreLogic’s principal economist, in a statement. “While the share of mortgages that are 30 to 89 days past due remains below the pre-pandemic level, the slight increase is occurring in most areas of the country.

“[That] could indicate that more borrowers are having trouble making their monthly payments.”

In the Inland Empire, the foreclosure rate in July was 0.2 percent, up from 0.1 percent year-over-year, CoreLogic reported.