Delays in US remain low in January in terms of capital accumulation and earnings

Key Insights benchmark for loan repayment: January 2022

  • The country’s overall crime rate was 3.3% in January.
  • All U.S. states and subway areas have seen year-over-year reductions in delinquency.

In January 2022, 3.3% of home mortgages were at some stage of delinquency (30 days or more in arrears, including those excluded)[1], which was a decrease of 2.3 percentage points from January 2021 according to the latest CoreLogic Loan Performance Insights report. This is the lowest overall crime rate in the United States since at least January 1999.

Overall crime rates

The share of mortgages that were overdue 30 to 59 days – considered arrears at an early stage – was 1.2% in January 2022, from 1.3% in January 2021. The share of mortgages in arrears 60 to 89 days was 0.3% in January 2022, from 0.5% in January 2021.

The rate of serious arrears – defined as overdue 90 days or more, including foreclosure loans – was 1.8% in January, up from 3.8% in January 2021. While the foreclosure rate was reduced to 0.2% from 0 , 3% in January 2021, the expiration of Moratoriums in some states caused an increase in the number of seizures from December 2021. However, the foreclosure rate in January 2022 was stable since December and is still the lowest it has been. recorded since at least 1999.

Figure 1: The current transition rate to 30 days shows a sharp decrease from the previous year

January 2022

Delinquency Stage: Transition Rate

In addition to delinquency rates, CoreLogic tracks the rate at which mortgages move from one stage of delinquency to the next, such as moving from the current to 30 days late (Figure 1).

The share of mortgages converted from current to 30-day arrears was 0.7% in January 2022 – unchanged from January 2021. Low transition rates show that while mortgage rates at any stage of arrears remained high. fewer borrowers slipped into arrears than at the peak of delinquency rates in 2020.

Figure 2: State with the highest and lowest mortgage rates at least 30 days before maturity

January 2022

State and Metro Level Violations

All states recorded annual reductions in overall delinquency rates in January 2022, as the employment picture improved across the country compared to a year earlier. Figure 2 shows the states with the highest and lowest mortgage share of 30 days or more. In January 2022, this percentage was higher in Louisiana at 6.3% and lower in Idaho at 1.6%. Idaho had one of the strongest jobs in the United States and Louisiana had one of the weakest. As of January 2022, Idaho had recovered all the jobs lost in March and April 2020, while Louisiana had recovered only 68% of the lost jobs.

Figure 3: Rate of mortgages overdue at least 30 days for the 10 largest metropolitan areas

January 2022

Figure 3 shows the delay rate of more than 30 days for January 2022 for 10 large metropolitan areas.[2] New York and Houston had the highest rate of 4.6%, and San Francisco had the lowest rate of 1.7%. The Miami interest rate fell by 4.6 percentage points compared to the previous year. Except for the top 10, all metros recorded a decrease in the overall crime rate. However, overall delinquency rates remain high in some subways, including Pine Bluff, Arkansas (9.2%). Odessa, Texas (8.8%) and Vineland-Bridgeton, New Jersey (8.6%).

The overall mortgage delinquency rate in the country reached a record low in January, reaching 10ου successive months reductions from year to year. This trend can be attributed to two well-known factors: the escalation of housing prices and the strong labor market. Housing prices in the US continue to reach new highs, rising 20% ​​year on year in February. Meanwhile, the latest US Jobs Report shows that the country added an average of 562,000 jobs per month in the first quarter of 2022.

© 2022 CoreLogic, Inc. All rights reserved.

[1] The data in this report is provided by TrueStandings. CARES law provided tolerance to federally backed mortgage borrowers financially affected by the pandemic. Debtors in a mortgage program who have missed a mortgage payment are included in CoreLogic arrears statistics, even if the loan servicer did not report the loan as overdue in the credit repositories.

[2] The metropolitan areas used in this report are the 10 most densely populated Metropolitan Statistical Areas. The report uses Metropolitan Addresses where available.

Leave a Comment