– The mortgage delinquency rate increased in September compared to August and September 2022.
– The national delinquency rate is still lower than pre-pandemic levels.
– Serious delinquencies (90+ days past due) increased for the first time in 2023.
– Early-stage delinquencies (30 and 60 days past due) continue to rise.
– The number of foreclosures is decreasing, reaching the lowest point since March 2022.
– Mississippi, Louisiana, Alabama, Indiana, and Pennsylvania had the worst mortgage performance.
– California, Idaho, Montana, Washington, and Colorado had the best mortgage performance.
The national delinquency rate climbed to 3.29% in September, which is up 12 basis points from August and up 13 basis points from September 2022. This makes it the second and largest annual increase in the last 2.5 years, however, the delinquency rate remains 71 basis points below the pre-pandemic level of September 2019.
In September, serious delinquencies (90+ days past due) increased for the first time in 2023 with 7,000 additional borrowers in that category for 455,000 people in total. However, the rate of serious delinquencies remains 6.7% below September 2019 levels.
Meanwhile, early-stage delinquencies (30 and 60 days past due) continued to increase. In September, 48,800 (+5.1%) additional borrowers were 30-days late on their mortgage payments, while 8,700 (+3%) were 60-days late on their mortgage payments. These rates have been going up for the past four months and six months, respectively.
However, the number of foreclosures keeps falling. In September there were only 214,000 loans in active foreclosure, the lowest point since March 2022. In fact, both foreclosure starts and completions (sales) respectively fell 20.4% and 8%, according to the report.
The five states with the worst mortgage performance were Mississippi, Louisiana, Alabama, Indiana and Pennsylvania. At the other end of the spectrum, California, Idaho, Montana, Washington and Colorado were the states which showed the best mortgage performance.
Property Chomp’s Take:
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The recent ICE Mortgage Monitor report sheds some light on the current state of mortgage delinquencies. While the delinquency rate remains relatively low compared to pre-pandemic levels, there has been a slight increase in delinquent loans in September.
According to the report, the national delinquency rate rose to 3.29% in September, marking a 12 basis point increase from August and a 13 basis point increase from September 2022. Despite this increase, it’s worth noting that the delinquency rate is still 71 basis points lower than the pre-pandemic level of September 2019.
One concerning trend highlighted in the report is the rise in early-stage delinquencies. The number of borrowers who were 30 and 60 days late on their mortgage payments increased in September. This upward trend has been going on for the past four and six months, respectively.
On the bright side, the number of foreclosures continues to decline. In September, there were only 214,000 loans in active foreclosure, the lowest number since March 2022. Both foreclosure starts and completions (sales) also saw significant decreases.
When it comes to mortgage performance by state, the report identified Mississippi, Louisiana, Alabama, Indiana, and Pennsylvania as the states with the worst performance. Conversely, California, Idaho, Montana, Washington, and Colorado were the states that showed the best performance.
So, while the overall mortgage delinquency rate has increased, it’s important to keep in mind that it’s still relatively low compared to pre-pandemic levels. The rise in early-stage delinquencies is a cause for concern, but the decline in foreclosures is a positive sign.
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