As of September, 267 out of 384 U.S. metropolitan areas posted an annual increase in their overall delinquency rate, according to CoreLogic. In fact, thirty-eight states saw overall mortgage delinquency rates increase year over year in September. To truly understand the overall foreclosure inventory picture, you need to understand the timelines of three terms: Early Stage Delinquencies, Adverse Delinquencies, and Serious Delinquencies. ESDs comprise the 30 – 59 day range; ADs comprise the 60 – 89 day range; and SDs are 90 days or more delinquent. To understand the delinquencies, though, one needs to understand both the Foreclosure Inventory Rate and the Transition Rate. The former pertains to mortgages in some state of foreclosure and the latter refers to the mortgages that went from being current to 30 days in arrears.
Louisiana, Mississippi, West Virginia, Alabama, and Texas were, by sequence, the leading states with the highest overall foreclosure rates. New York City, Denver, Miami, Houston, and Las Vegas led the highest rates for metro areas, sequentially.
The foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.3% in September, unchanged from the same time last year. The foreclosure inventory rate in September 2024 continues near the lowest rates seen since 1999.
