Thursday, June 21, 2018

Black Knight: National Mortgage Delinquency Rate Decreased in May, Foreclosure Inventory Close to Pre-Recession Average

by Bill McBride on 6/21/2018 07:00:00 AM

From Black Knight: Black Knight’s First Look: May 2018 Sees Second Fewest Foreclosure Starts in 17 Years; Active Foreclosure Inventory on Pace to Hit Pre-Recession Average in Early Q3 2018

• At 44,900, May 2018 saw the second lowest monthly foreclosure starts in more than 17 years

• Just 303,000 mortgages remain in active foreclosure; at 0.59 percent, the national foreclosure rate is now at its lowest point in 15 years

• At the current rate of decline, national foreclosure inventories are on pace to hit the pre-recession average (2000-2005) in early Q3 2018

• May marked five consecutive months of declining delinquencies, as post-hurricane improvement continues

• Delinquency improvements in hurricane-affected areas more than offset slight increases in non-impacted markets in May, dropping the national delinquency rate to its lowest level in 15 months
According to Black Knight's First Look report for May, the percent of loans delinquent decreased 0.8% in May compared to April, and decreased 4.1% year-over-year.

The percent of loans in the foreclosure process decreased 3.3% in May and were down 28.7% over the last year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.64% in May, down from 3.67% in April.

The percent of loans in the foreclosure process decreased in May to 0.59%.

The number of delinquent properties, but not in foreclosure, is down 60,000 properties year-over-year, and the number of properties in the foreclosure process is down 118,000 properties year-over-year.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  May
2018
Apr
2018
May
2017
May
2016
Delinquent3.64%3.67%3.79%4.25%
In Foreclosure0.59%0.61%0.83%1.13%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:1,867,0001,885,0001,927,0002,153,000
Number of properties in foreclosure pre-sale inventory:303,000314,000421,000574,000
Total Properties2,171,0002,199,0002,348,0002,727,000