by Calculated Risk on 12/20/2018 11:04:00 AM
Thursday, December 20, 2018
• Prepayment activity fell 14 percent month-over-month and 29 percent year-over-year to its lowest level since November 2008According to Black Knight's First Look report for November, the percent of loans delinquent increased 1.8% in November compared to October, and decreased 18.5% year-over-year.
• Historically, prepayments were driven primarily by refinance activity but, more recently, the primary driver has become housing sales
• The last time the prepayment rate was this low – in the heat of the financial crisis – interest rates were above 6 percent and purchase lending had fallen by more than 50 percent in a 24-month span
• Delinquencies saw a slight seasonal increase in November, but remain 19 percent below last year’s level
• Serious delinquencies (90 or more days past due) also increased slightly for the month; now stand at 510,00
• Foreclosure starts fell by 11 percent month-over-month, with an estimated 45,200 starts in November
• A slight uptick in foreclosure inventory was offset by a month-over-month increase in the number of outstanding mortgages, resulting in a net decline in the national foreclosure rate
The percent of loans in the foreclosure process decreased 0.2% in November and were down 22.0% 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 3.71% in November, up from 3.64% in October.
The percent of loans in the foreclosure process decreased slightly in November to 0.52% from 0.52% in October.
The number of delinquent properties, but not in foreclosure, is down 399,000 properties year-over-year, and the number of properties in the foreclosure process is down 69,000 properties year-over-year.
|Black Knight: Percent Loans Delinquent and in Foreclosure Process|
|Number of properties:|
|Number of properties that are delinquent, but not in foreclosure:||1,925,000||1,884,000||2,324,000||2,263,000|
|Number of properties in foreclosure pre-sale inventory:||268,000||267,000||337,000||498,000|
Posted by Calculated Risk on 12/20/2018 11:04:00 AM