Mortgage Delinquencies Up in September, Foreclosures Dip

Following a prolonged period of robust mortgage performance, the data indicate an upward trend in mortgage delinquency rates for September 2023, National Mortgage Professional reports.

The national delinquency rate for September reached 3.29%—that's up 12 basis points from August's 3.17% and 13 basis points year over year, but still 71 basis points below pre-pandemic levels of September 2019.

The report found an increase in early-stage delinquencies: Loans 30 days past due rose by approximately 48.8K (+5.1%), marking four consecutive monthly rises. Meanwhile, 60-day delinquencies saw an extension in their streak of increases, with a boost of 8.7K (+3.0%) over six months.

Serious delinquencies, referring to loans 90+ days overdue, climbed by 7K to 455K. Nevertheless, they are still 6.7% below the rates of September 2019.

On a brighter note, the number of loans in active foreclosure plummeted to its lowest since March 2022, reaching 214,000 in September. This number is a significant 25% below the levels seen before the pandemic in 2019.

Read more