Mortgage delinquency rates fall across the U.S.

Despite a housing market pressured by high mortgage rates and home prices, many Americans have been keeping up with their housing payments, according to a study. In fact, only 2.6% of all mortgages in the U.S. were in a stage of delinquency in June– remaining at a historic low, according to the latest data by CoreLogic. And no state posted an annual increase in delinquency rates that month. 

Here are the changes that occurred in mortgage delinquency in June, and how it compares to last year, according to CoreLogic’s analysis.
 

• Early-stage delinquencies (30 to 59 days past due): 1.3%, up from 1.2% in June 2022 
• Adverse delinquency (60 to 89 days past due): 0.4%, up from 0.3% in June 2022 
• Serious delinquency (90 days or more past due, including loans in foreclosure): 1%, down from 1.3% in June 2022 
• Foreclosure inventory rate (the share of mortgages in some stage of the foreclosure process): 0.3%, unchanged from June 2022 
• Transition Rate (the share of mortgages that transitioned from current to 30 days past due): 0.6%, down from 0.7% in June 2022

However, it’s important to note that CoreLogic’s latest data doesn’t account for recent natural disasters. 

"It is typical to see mortgage delinquencies increase about one month following disasters," CoreLogic Principal Economist Molly Boesel said in a statement. "Delinquency rates in these areas often remain elevated for months, progressing from early stage to serious. For example, two Florida Gulf Coast communities continued to post annual increases in serious delinquency rates in June, nine months after the property damage from Hurricane Ian in September 2022."

But overall, experts suggest that mortgage delinquency rates could remain at historic lows through the rest of the year.

"Far fewer states and metro areas posted year-over-year delinquency increases than recorded earlier in the spring, indicating that both the employment situation and mortgage performance are on a solid track for the rest of 2023," CoreLogic said in its report. 

If you’re looking into homeownership, you could still find the best mortgage rate by shopping around. Visit Credible to compare options from different lenders without affecting your credit score. 

AUGUST JOBS REPORT IS ANOTHER STRONG ONE, BUT SIGNS OF COOLING EMERGING

Home prices keep climbing 

Although mortgage delinquency rates remained at record lows in June, home affordability continues to drag on many would-be homebuyers. Annual home prices inched up by 1.6% in June, according to a separate study by CoreLogic. That spike represented the 137th straight month of year-over-year gains. This is up from the home price growth of 1.5% in May, and a shift following 13 months of slowing.

The median home price in June was $376,000. Here are the areas with the highest average home prices. 

• California ($720,000)
• Washington D.C. ($680,000)
• Massachusetts ($583,500)

But recent trends in home prices could be a reflection of a resilient economy in the face of high inflation and rising interest rates, according to experts. 

"While the continued imbalance between buyers and sellers continues to pressure home prices, June’s annual bump in price growth echoes economic resiliency, a thriving U.S. job market and strong consumer spending," CoreLogic Chief Economist Selma Hepp said in a statement. "And while higher mortgage rates are impacting affordability for buyers with loans, almost four in 10 sales are all-cash transactions. Also, most baby-boomer homeowners have substantial equity, which could be putting pressure on prices in markets where that generation is currently migrating."

If you’re considering becoming a homeowner, it could benefit you to compare your mortgage options and find the best rate. Visit Credible to get your personalized rate in minutes. 

CHEAP MORTGAGES KEPT HOUSING FROM CRASHING BUT ALSO SUBDUED INVENTORY: ZILLOW

Here’s where to find the most affordable homes 

Although high home prices have held steady in recent months, homebuyers can still find deals throughout the country.  Here are the most affordable states to buy a home, and their typical home price, according to a study by Agent Advice, a real estate company. 

• West Virginia: $146,578
• Mississippi: $162,292
• Arkansas: $178,744
• Louisiana: $182,959
• Oklahoma: $188,453
• Kentucky: $190,037
• Iowa: $200,038
• Ohio: $205,800
• Alabama: $206,044
• Kansas: $210,742

West Virginia’s average home price was 57% less than the national average of $338,649, according to Agent Advice. 

"Overall, there has been an increase in cost in the last three years throughout the nation," Agent Advice said in its report. "However, this research shows that there has also been a depreciation in multiple states over the last two years, showing a rise in more affordable housing.  

"In Louisiana, for example, typical house prices have reduced by 8% and $15,648 within the last two years," Agent Advice continued. "So, it will be interesting to see if this trend in the cost of housing will eventually decrease throughout the country."  

If you’re ready to buy a home, you may want to compare different mortgage lenders to find the best offer. Visit Credible to speak with a mortgage expert and get your questions answered. 

5 WAYS TO PAY OFF DEBT THIS LABOR DAY

Have a finance-related question, but don't know who to ask? Email The Credible Money Expert at moneyexpert@credible.com and your question might be answered by Credible in our Money Expert column.