Residential Real Estate News
Overall U.S. Mortgage Delinquency Rates Dip in December
According to CoreLogic's latest Loan Performance Insights Report for December 2024, 3.1% of all U.S. mortgages were in some stage of delinquency (30 days or more past due, including those in foreclosure). This figure remains unchanged from December 2023. The report also highlights the foreclosure inventory rate, which stood at 0.2% in December 2024, reflecting a 0.1% decrease from the previous year and matching the lowest level recorded since at least January 1999. Notably, the foreclosure rate has consistently ranged between 0.2% and 0.3% since 2020.
Mortgage Delinquency Trends
CoreLogic analyzes all stages of delinquency to provide a comprehensive view of mortgage market health. In December 2024, delinquency and transition rates, along with their year-over-year changes, were as follows:
- Early-Stage Delinquencies (30-59 days past due): 1.6%, unchanged from December 2023.
- Adverse Delinquencies (60-89 days past due): 0.5%, also unchanged year over year.
- Serious Delinquencies (90+ days past due, including foreclosure): 1%, holding steady from the previous year and continuing its decline from a peak of 4.3% in August 2020.
- Foreclosure Inventory Rate (mortgages in the foreclosure process): 0.2%, down from 0.3% in December 2023.
- Transition Rate (mortgages moving from current to 30 days past due): 0.8%, slightly lower than 0.9% in December 2023.
Market Resilience and Economic Strength
Overall, the national delinquency rate remained unchanged compared to December 2023. As home prices continue to rise, many homeowners are building equity, providing financial flexibility in times of need. While some areas still experience persistent pockets of serious delinquency, the 55% drop in metros recording delinquency increases is a positive sign for homeowners and suggests continued strength in the U.S. economy and labor market.
"December's national delinquency rates show a mortgage market that remains strong, with 97% of borrowers making on-time payments -- matching last year's rate and slightly improving from the previous month," said Molly Boesel, principal economist at CoreLogic. "At the metro level, promising trends have emerged, with the percentage of metropolitan areas experiencing rising delinquencies falling from 80% in November to 36% in December. This reflects the overall strength of the economy and labor market."
State and Metro Highlights
10 states saw year-over-year increases in mortgage delinquency rates, with the largest gains in:
- Florida (+0.7 percentage points)
- South Carolina (+0.4 percentage points)
- North Carolina & Georgia (both +0.3 percentage points)
- All other states ranged between -0.4 and +0.2 percentage points.
137 out of 384 U.S. metro areas recorded increases in delinquency rates over the past year. The metros with the most significant increases were:
- Asheville, NC (+3.0 percentage points)
- Tampa-St. Petersburg-Clearwater, FL (+2.0 percentage points)
- Augusta-Richmond County, GA-SC (+1.9 percentage points)
- Other year-over-year changes ranged from -2.2 to +1.6 percentage points.
144 metros reported an increase in serious delinquency rates (90+ days past due). The largest annual increases were observed in:
- Asheville, NC (+1.4 percentage points)
- Augusta-Richmond County, GA-SC (+1.2 percentage points)
- Tampa-St. Petersburg-Clearwater, FL & Valdosta, GA (both +0.1 percentage points)
- Other year-over-year changes ranged from -1.8 to +0.9 percentage points.
