by Calculated Risk on 11/25/2019 08:49:00 AM

From Black Knight: Black Knight’s First Look: Strong Decline in October Mortgage Delinquencies; Refi Wave Pushes Prepayments to Highest Level in More than Six Years

• The national delinquency rate fell to 3.39% in October, a nearly 7% decline from last year, and within 0.03% of the record low set in May 2019

• Serious delinquencies fell by 10,000 from September, while the number of loans in active foreclosure edged up slightly (+3,000)

• Prepayment activity climbed another 16% in October to the highest level since May 2013

• Prepays are now up 134% year-over-year as refinancing homeowners continue to take advantage of low interest rates

• However, modest rises in 30-year rates in recent weeks – coupled with seasonal slowing in home sales – may dampen prepayment rates in coming months

According to Black Knight's First Look report for October, the percent of loans delinquent decreased in October compared to September, and decreased 6.9% year-over-year.

The percent of loans in the foreclosure process increased 1.0% in October and were down 6.2% 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 3.39% in October, down from 3.53% in September.

The percent of loans in the foreclosure process increased slightly in to 0.48% from 0.48% in September.

Black Knight: Percent Loans Delinquent and in Foreclosure Process
	Oct 2019	Sep 2019	Oct 2018	Oct 2017
Delinquent	3.39%	3.53%	3.64%	4.44%
In Foreclosure	0.48%	0.48%	0.52%	0.68%
Number of properties:
Number of properties that are delinquent, but not in foreclosure:	1,786,000	1,854,000	1,884,000	2,262,000
Number of properties in foreclosure pre-sale inventory:	255,000	252,000	267,000	348,000
Total Properties Delinquent or in foreclosure	2,041,000	2,106,000	2,152,000	2,610,000