Monday, September 23, 2019

Black Knight's First Look: National Mortgage Delinquency Rate Decreased in August, Foreclosure Inventory Lowest Since 2005

by Calculated Risk on 9/23/2019 10:16:00 AM

From Black Knight: Black Knight’s First Look: Foreclosure Starts Hit 18-year Low in August; Mortgage Prepayments Continue to Rise in Lower Interest Rate Environment

• August’s 36,200 foreclosure starts made for the lowest single-month total since December 2000

• The number of loans in active foreclosure inventory also fell; at 253,000, it’s the fewest since 2005

• Prepayment activity – typically a good indicator of refinance activity – continues to press upward, increasing 5% from July to reach a three-year high

• August’s prepayment rate was up 62% from the same time last year and 2.5 times the 18-year low hit in January

• Given a 30-45 day closing window, the month’s prepayment activity reflects June/July interest rates; as rates fell further in August and September, the peak in refinance-driven prepayments is likely still to come
According to Black Knight's First Look report for August, the percent of loans delinquent decreased slightly in August compared to July, and decreased 1.5% year-over-year.

The percent of loans in the foreclosure process decreased 2.4% in August and were down 11.5% 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 3.45% in August down from 3.46% in July.

The percent of loans in the foreclosure process decreased in August to 0.48% from 0.49% in July.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
  Aug
2019
Jul
2019
Aug
2018
Aug
2017
Delinquent3.45%3.46%3.52%3.93%
In Foreclosure0.48%0.49%0.54%0.76%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:1,813,0001,807,0001,818,0002,003,000
Number of properties in foreclosure pre-sale inventory:253,000258,000280,000385,000
Total Properties Delinquent or in foreclosure2,066,0002,065,0002,099,0002,388,000